There are mixed views as to the current state of our economy. Some say that we are headed toward another recession. Some say we are headed toward an economic recovery. While the economic outlook may be bleak for some, the Federal Reserve sees a brighter picture toward our economy's long-term growth. However, even the FOMC has not been able to place a timetable as to this bright picture's occurrence. .
Monetary Policy Paper:.
Characterizing the state of our economy is a difficult task to say the least. Economic indicators such as residential housing paint a positive economic picture. However, other economic indicators such as consumer confidence paint a more negative economic picture. It is amazing that a company such as Enron can stir such commotion within our economy. Scandals such as Enron's faulty accounting practices have had a huge impact on consumer confidence as well as our economy as a whole. War and threats of terrorist attacks on U.S. soil does not help either. If it weren't for very low consumer confidence levels, our economy's outlook would be much brighter. .
The Federal Reserve has and always will be concerned with such things as inflation and the possibilities of recession, but realizing the great impact that consumer confidence has recently had on our economy, the FOMC has currently focused in on this situation's various causes and effects as one of it's main concerns. Two other situations and / or concerns have been prioritized over inflation and recession. They include collateral eligibility contingency planning, as well as the possible restructuring of its discount window facility. .
The eligibility contingency planning, which intensified after the September 11th attacks, deals with the possible purchasing of the System Open Market Account of mortgage-backed securities guaranteed by the Government National Mortgage Association, as well as the addition of foreign sovereign debt securities to the list of collateral eligible for U.