The FOMC opts to keep interest rates as-is. But what does that mean for us?

With the FOMC (Federal Open Market Committee) having their September press conference today, we delve into an essential topic for your students' financial literacy journey: the Federal Reserve's role in shaping personal finances. Let's break down the key topics discussed in today's press conference and explore some engaging discussion questions to use in your classrooms.

1. The Dual Mandate: The Federal Reserve's primary focus is on promoting maximum employment and maintaining stable prices (price stability) for the American people. Why is this mandate crucial for your students' financial future? How does it affect their job prospects and the cost of living?

2. Inflation Worries: High inflation can erode purchasing power, affecting essential expenses like food, housing, and transportation. Discuss with your students how they can protect their finances during inflationary periods. What practical steps can they take?

3. Monetary Policy: Your students may have heard about the Fed's monetary policy decisions (multiple interest rate increases, with today's announcement to keep interest rates steady). Break it down for them. What is monetary policy, and how does it influence interest rates, borrowing, saving, and investment decisions?

4. Economic Indicators: Explore economic indicators like GDP growth, consumer spending, and labor market conditions. How do these indicators relate to your students' future job prospects and financial planning?

5. Labor Market Insights: Dive into the labor market's complexities. What do job gains, unemployment rates, and wage growth mean for individuals seeking employment or negotiating salaries?

6. Inflation Projections: Help your students understand the Fed's inflation target of two percent. Why is it challenging to achieve, and what does it mean for their financial stability?

7. Monetary Policy Stance: Discuss the impact of the Fed's monetary policy stance on economic activity and inflation. What are the potential consequences of a restrictive monetary policy, and how can your students navigate these changes?

8. Federal Funds Rate: Break down the significance of the federal funds rate in monetary policy. How do changes in interest rates affect their financial choices, from loans to savings?

9. Remaining Flexible: Emphasize the importance of the Fed's adaptability in uncertain economic times. How can your students prepare for and respond to changing monetary policies?

10. Personal Financial Strategies: Finally, explore financial strategies that can help your students weather economic fluctuations. What practical steps can they take to safeguard their financial well-being?

Our hope is this can serve as a roadmap for you to engage your students in discussions about personal finance and the Federal Reserve's role in shaping their financial future. By being brought into the discussion of these topics, students can feel empowered as they become their own financial stewards--even during uncertain economic periods.

Happy teaching, and here's to empowering the next generation with financial knowledge!

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Browse previous FOMC press conference-related blog posts with activities!

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Looking for more economics content? Check out NGPF's Econ Collection.

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.

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