At the Conclusion of Its Meeting on January 30, 2013

question 40

Essay

At the conclusion of its meeting on January 30, 2013, the Federal Open Market Committee released a statement that included the following sentence: "The committee will maintain the target range for the federal funds rate at 0 to ¼ percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate as long as the unemployment rate remains above 6½ percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored." What is the significance of this statement?

---

Definitions:

Cost-effectiveness

A measure that compares the relative costs and outcomes of different courses of action or decisions.

Reliance on Technology

The dependence of individuals, organizations, or societies on technology for operations, communication, and efficiency.

Cost-benefit Analysis

Cost-benefit analysis is a process used to evaluate the total anticipated cost of a project compared to the benefits in order to determine the best course of action.

Outsourcing

The practice of hiring third parties to perform services or produce goods that were traditionally performed or produced in-house.