Because there are multiple goals for monetary policy, Fed Challenge teams must look at a variety of data. Price stability, economic growth, and maximum employment are important goals of monetary policy. However, there is more data in these three areas than could possibly be collected and analyzed. That is why it is important for Fed Challenge teams to decide what data to collect, and be able to explain what the data shows and why it was selected from among the many other possibilities.

A good way to do this is to look at the data discussed by FOMC members in FOMC statements, research publications, and speeches. Current economic conditions or current events may also influence the focus of additional data analysis. In general, Fed Challenge teams will at least want to consider data measuring prices, output, and employment and the change in these measures over time. They will also want to consider data and information indicating future changes in these measures.

"The Fed Challenge Brief" cards that follow can help teams understand, select, and analyze important economic variables. In addition, participants should refer to Preparing for the FOMC Meeting and the Teacher's Guide and other information available on the Fed Challenge Web site.

Overview (PDF 26KB)
The Federal Reserve System (PDF 118KB)
The Fed Funds Rate (PDF 187KB)
Gross Domestic Product (GDP) (PDF 160KB)
Industrial Production and Capacity Utilization (PDF 177KB)
Interest Rates (PDF 252KB)
Labor Market Data (PDF 76KB)
Money Aggregates (PDF 150KB)
Price Indexes (PDF 168KB)
Psychological Variables (PDF 134KB)
Sales (PDF 109KB)