The Fed

Federal Reserve and the Economic Bubble On Tuesday, November 16, 1999, the Federal Reserve Board will decide whether or not to tighten monetary policy at the Federal Open Market Committee meeting. Throughout the year the Fed has been somewhat hesitant to raise rates, which could slow the economy. While raising the Federal Funds and Discount Rates could, in the long run, lead to higher interest rates, many people worry that the potential for an overheated economy is …

…Wall Street Journal 8 Oct. 1999, A2. Schlesinger, Jacob M. and Sarah Lueck “Fed Raises Rates by One-Quarter Point.” Wall Street Journal 17 Nov. 1999, A2 Testimony of Alan Greenspan; July 22, 1999; http://woodrow.mpls.frb.fed.us/info/policy/mpo/mp9997.html July 1999 Humphrey-Hawkins Report: Report Section 1: Monetary Policy and the Economic Outlook http://www.bog.frb.fed.us/boarddocs/HH/1999/July/Reportsection1.htm Economy At a Glance; Bureau of Labor Statistics; http://stats.bls.gov/eag.table.html