Log on to www.federalreserve.gov/policy.htm, then click on the Monetary Policy Report to the Congress.

(a) Click on the most recent statement and ac- cess the section on Monetary Policy and Economic Outlook. Read this section and summarize the Fed's perception of the econ- omy and their monetary policy response.

(b) Go back to the Web Activities in Chapter 10, Question 1, and Chapter 12, Question 1. Based on the information from these activi- ties, do you agree with the Fed's assessment of the economy? Why or why not?