|Fed resource:||A Day in the Life of the FOMC|
|Short description:||Simulate an FOMC Meeting|
|Lesson time:||60 minutes|
|Materials:||Copies of a Day in the Life of the FOMC, Copies of the Beige Book summary from the Money Section of the USA Today|
|Audience:||High School, General Audiences, College (Undergrad)|
|Grades:||9, 10, 11, 12, 12+|
Federal Reserve - FOMC, Function of the Federal Reserve, Monetary Policy Tools
Have students read A Day in the Life of the FOMC prior to the next release of the Beige Book. (For the dates of Beige Book releases see: www.federalreserve.gov/fomc/beigebook/2007/default.htm)
On the Thursday after the Beige Book is released, copy a summary of the contents from the USA Today Money Section.
Distribute a copy to each student.
Divide the class into 12 groups and assign each group a FED District.
Tell the students to read the summary in general and their district's summary paragraph.
Explain/discuss the effect of a change in the federal funds rate target on interest rates.
Have each "district" cast a vote to raise, lower or keep the federal funds rate target the same. Tally the votes. Two weeks later, when the FOMC meets, compare how the class' prediction faired. (For dates of FOMC meetings see: www.federalreserve.gov/fomc/#calendars)
|Submitted by:||Ross Daniel
Baton Rouge Community College