The Federal Reserve Controls the American Economy Term Paper

The Federal Reserve Controls the American Economy - Term Paper Example It is obvious that the economy is all about managing finances, and since the Federal Reserve has oversight authority over the country’s financial administration it controls the entire economy. As a central bank, the Federal Reserve sets the rates for other commercial banks thus influencing the interest rates. Similarly, the Federal Reserve determines the circulation of money thus influencing inflation and flow of money. Through these two dynamic roles of the Federal Reserve, it is evident that the US economy lies directly in the hands of the Federal Reserve. Several developments in the US economy, like the great depression, have seen the augmentation of the evolution and transformation of the roles of the Federal Reserve. The congress developed three crucial goals regarding monetary policy in the Federal Act namely; utmost employment, constant prices, and reasonable long-term interest rates. To be relevant to the growing economic realities the roles of Federal Reserve have gro wn to include other areas like performing the nation's monetary policy, managing and regulating banking entities, maintaining the steadiness of the financial arrangement and offering financial services to reservoir organizations, the U.S. government, and abroad executive institutions. The Beige Book is a manual usually published by the Federal Reserve that contains research on various aspects of the US economy. Structure of the Federal Reserve System and Its Core Functions The federal system structure constitutes of governors selected by the president, Federal Open Market Committee, twelve local Federal Reserve Banks situated in main cities all over the nation, plentiful surreptitiously owned U.S. affiliate banks and assorted advisory committees (Willis 48). The FOMC is the board in charge of establishing monetary policy, which comprises all seven affiliates of the Board of Governors along with the twelve local bank heads. Nonetheless, simply five bank presidents take part in an ele ction at whichever time. The Federal Reserve System intention is to serve the purposes of both the broad public as well as clandestine bankers. The outcome is a structure that is painstakingly unique with central banks. Federal Reserve is further remarkable in that Department of the Treasury, an entity out of the central bank, makes the currency used. The Federal Reserve is independent, and its decision needs not to be approved by the executive or government. Hence, it base its mandate on laws ratified under which it operates with autonomy under congress oversight. However, the executive select the leaders of the Federal Reserve while the congress does the confirmation. The government has some control over the Federal Reserve because it sets the remuneration of the highest leaders of the system. All profits derived by the Federal Reserve System go to the government. Federal Reserve System and the US Economy The Federal Reserve has oversight authority on the American economy, therefo re, exercising overall control on the country’s economy (Meltzer 32-35). The functions of the Federal Reserve regard overall economic management. The Fed controls inflation in a manner that keeps recession at bay. Other significant roles of the Fed in US economy include supervision of the country’s banking system to cushion customers, maintaining steadiness of monetary markets and confine probable crises, and functioning as a

People Tree Marketing Communication Plan Dissertation

People Tree Marketing Communication Plan - Dissertation Example They are quick fashions and they go with the trends in the markets. High amount of wastes are a major problem faced by fast fashion industries (Hines and Bruce, 2006). Slow fashion are those sectors which are organized in such a way so as to provide environmental, economic and social benefits to all stakeholders involved in the supply chain. These are the companies who are in this industry for many years and have evolved from a profit-making culture to an environment friendly and sustainable organizational goal. Looking at the change in the communication and perception of the overall industry trends, People Tree now wish to broaden their appeal and become a mainstream provider of fashion. The organization is concerned with its current brand equity and brand image and expects to communicate its brand on a more sustainable and environmental friendly platform. With the change of image and activities supporting a sustainable environment, the organization aims to gain sustainable certific ates. According to industry trends, these are certified of sustainability and image makeover will be the communication platform between the industry and consumers. 2.0 Brand Communications Objective 2.1 External and Internal Situational Analysis 2.1.1 External Analysis – Macro Environment The fashion market in United Kingdom is a leading industry. The market is filled with a large number of fashion brands ranging from luxury brands to local street wears. According to fashion United, the total expenditure of UK Consumption on footwear and clothing alone is more than 60 billion. The fashion and textile sector of United Kingdom employs more than 6000 workers. During the global economic downturn, the average household consumption of textile reduced... People tree is a fair trade certified organization, according to which, sustainable and ethical fashion market is the top priority. The organization aims to transform ethical fashion into a glamorous and desirable market. The brand is positioned as a high involvement category involving much of attraction from the consumers. The brand is placed in the mass category of apparel products for men and women. These include casuals, formals and ethnic wear. These products are medium to high prices and places with the positioning of value for money and affordable pricing. This category of apparel has the largest base of consumers and thus competition is high. Most of the other companies produce similar clothing range. The major differentiation comes from pricing and superior quality. The segmentation of customers will largely depend on the values provided by the brand as well as the psychology of the consumers with respect to the attributed provided by the brand. It is very important to segme nt the customers on the basis of their interests, activities and behaviour towards the organization. This is very crucial because it will help is preparing appropriate strategies and marketing programs targeting the right consumers mix. The products of People Tree are generally purchased by consumers of higher social class, since it is majorly ethical and high end fashion apparel; the people purchasing these products are more quality conscious rather than price conscious.(Pettigrew, Whittington and Thomas, 2006).