Using the PDF of the press statement of the most recent Federal Open Market Committee meeting found here https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm (April 31-May 1):

a) What was the decision regarding the federal funds rate target?

b) Which administered rates were changed? What did they change to?

c) Was there any forward guidance for this meeting?

d) Based on what you learnt in class, the current political climate, and general reasoning, do you think the FED might increase, decrease or hold firm with their administered rates and the FED funds range in the next FOMC meeting. Why?

e) The Bank Term Funding Program (BTFP) was established in 2023 by the Federal Reserve, following the collapse of Silicon Valley Bank. In one or two sentences, what is the BTFP?

f) Discuss the concept of 'moral hazard' in the context of BTFP. How might these safety nets affect the risk-taking behavior of financial institutions compared to non-financial businesses?