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Humphrey-Hawkins Report

I need to answer these questions related to the Monetary Policy Report to Congress?

Characterize the state of the economy from the report?

Is the Fed more concerned about inflation or possibility of recession?

What is the stated direction of recent monetary policy?

What policy actions has the Fed taken to confirm that direction?

How that policy actions could affect your business decision making?

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I need to answer these questions related to the Monetary Policy Report to Congress.

Characterize the state of the economy from the report?
The state of the economy is that the GDP that fell sharply during the first quarter of 2009 has stabilized. One of the reasons is that of the stimulus package implemented by the government. The labor market conditions are very weak and private sector payroll employment declined. Consumer price inflation remained weak. Finally, there is some stability in the financial markets. The overall economic outlook has improved somewhat during recent months.

Is the Fed more concerned about inflation or possibility of recession?
The Fed is more ...

Solution Summary

Humphrey-Hawkins Report is discussed in great detail in this solution.

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