Prepare a 700-1,050-word paper on the U.S. Federal Reserve monetary policy. Be sure to address the following points in your paper:

1) Characterize the state of the economy.

2) Is the Federal Reserve more concerned about high inflation or the possibility of a recession? Or, is the Federal Reserve more concerned about other issues? If so, what are they?

3) What is the stated direction of recent monetary policy? What policy actions have the Federal Reserve taken recently to confirm that direction?

b. To answer these problems, go to the Federal Reserve Web site at: http//www.federalreserve.gov. Locate the section for

Testimony and Speeches, and the section for Monetary Policy Report to the Congress. Read the most recent report.