By law the chairman of the Board of Governors of the Federal Reserve presents a report called the Humphery-Hawkins Report twice a year to Congress. This report describes the state of the economy and the direction of monetary policy".

Go to the followingFed's web siteand find the latest Reports.

Click on theMonetary Policy Report to the Congress/ The Chairman of The Fed Speech before the Congress (the recent Testimony before the Congress.)

From your reading of the most recent report,answer the following questions:

1. Characterize the state of the economy.
2. Is the Fed more concerned about inflation or possibility of recession?
3. What is the stated direction of recent monetary policy?
4. What policy actions has the Fed taken to confirm that direction?
5. How those policy actions could affect your potential business decision making?