Project 2: What Was The FOMC's Rationale For Taking These Actions?

The Federal Open Market Committee (FOMC) meets on October 31-Nov 1 this fall. For each of these meetings the student submits the following information typed (Double spaced, Times New Roman, Justified alignment) in one page or less



1. Summarize the action(s), if any, taken by the FOMC. (i.e. investment purchasing, monitoring of the federal funds rate, etc.) – paragraph 1

2. Explain in your analysis:

a. What was the FOMC's rationale for taking these actions? – paragraph 2

b. What was the immediate effect of the announcement on the following economic indicators and your opinion on why this effect happened: - paragraph 3

i. Dow Jones Industrial Average

ii. Interest Rates

1. 3-month Treasury Bill Yield

2. 10-year Treasury Note Yield

Important notes: Each assignment either needs a paper copy to be brought to class or placed under my door at the office. No emails. Do not plagiarize another student's paper or the FOMC statement or I will report you to judicial affairs. The DJIA average and the treasury securities should be the previous day's closing price/rate and the closing price/rate on the day of the FOMC announcement. (i.e. the announcement is usually at 1 p.m. CST on the second day of the meeting).