The effective federal funds rate is currently 0.33 percent (annual) and the discount yield on 30-day Treasury bills is 0.20 percent. Investors widely expect the Federal Open Market Committee to raise the federal funds rate target by 50 basis points at its next meeting in early May. To reach this target, the NY Fed Trading Desk will use open market operations in order to raise the discount yield on Treasury bills by 50 basis points. Describe whether the Federal Reserve will buy or sell Treasury bills and calculate the price for these bills (expressed as a percentage of face value) that will allow the Fed Reserve to reach its rate target The effective federal funds rate is currently 0.33 percent (annual) and the discount yield on 30-day Treasury bills is 0.20 percent. Investors widely expect the Federal Open Market Committee to raise the federal funds rate target by 50 basis points at its next meeting in early May. To reach this target, the NY Fed Trading Desk will use open market operations in order to raise the discount yield on Treasury bills by 50 basis points. Describe whether the Federal Reserve will buy or sell Treasury bills and calculate the price for these bills (expressed as a percentage of face value) that will allow the Fed Reserve to reach its rate target