The Federal Reserve Challenge is a high school competition designed to promote a better understanding of the nation's central bank, forces influencing U.S. and international economic conditions, and the nuances involved in making monetary policy decisions. Each Fed Challenge team makes a short presentation that includes an analysis of the current state of the economy and a recommendation as to what monetary policy action the Federal Open Market Committee should take. Federal Reserve Bank economists and officers judge the local competitions, and FOMC members, Federal Reserve Governors and Reserve Bank presidents, judge the National Finals. The Shaker Heights team won the Cleveland regional competition, and it competed the Cincinnati and Pittsburgh regional winners to advance to the national championship in Washington, D.C.
History
Fed Challenge 2006 is a monetary policy competition sponsored by the Federal Reserve. The New York Fed began the competition in 1995. Courtesy of Citibank, N.A., each member of the winning team receives a $7,000 scholarship, their teacher receives a $5,000 incentive award, and their school receives a $10,000 grant toward establishing an economics laboratory.The Federal Reserve Bank of Cleveland has sponsored the Fed Challenge competition for Fourth District students since the 1998-1999 school year. The Cleveland District Finalist gets an all-expenses paid trip to the National Final Competition in Washington, D.C. In 2006, a Shaker Heights High School team won the District Championship and traveled to the national championship in Washington, D.C. April 20-May 1 to compete against teams from other Federal Reserve Districts.
Key Elements
Key Elements- Teams are comprised of up to five students.
- Many teams prepare before or after school. The method and time spent in preparation is entirely up to the team.
- While the goal of the presentation is to recommend a course of monetary policy and defend the view, teams may be creative in their presentation.
- At the national finals, one team from each participating Federal Reserve District is present.
Each team is judged on a scale of 1 to 10 in the following categories:
- Knowledge of monetary policy and the Federal Reserve's role in its implementation
- Response to the judges' questions
- Quality of the presentation
- Quality of the research and analysis
- Evidence of team work and cooperation
In the district competitions, Cleveland Fed research staff serves as judges. In the national semi-final competition, research economists from Reserve Banks are judges, and advisors to the Federal Open Market Committee judge the final competition.
Annual Budget
Each member of the teach that wins the national championship receives a $7,000 scholarship, their teacher receives a $5,000 incentive award, and their school receives a $10,000 grant toward establishing an economics laboratory, all courtesy of Citibank, N.A. Citibank also awards $4,000 scholarships, $2,000 incentive awards, and $3,000 grants to three national finalist teams.Staffing Needs
Each team has a coach; it was a teacher in the case of Shaker Heights.Outcomes
It is also meant to help students develop research, presentation, and critical-thinking skills; to foster a closer relationship between high schools and the Federal Reserve Banks; and to promote interest in economics as a subject for undergraduate and postgraduate study.Contact Information
Diana Jones, Teacher/CoachShaker Heights High School
15911 Aldersyde Drive
Shaker Heights, OH 44120
Federal Reserve Bank Challenge