Since the Great Recession of 2008, the Federal Reserve Bank has exercised its authority over monetary policy to establish and maintain artificially low levels of interests in an effort to stimulate economic growth. This decision has created both benefits and unintended adverse consequences for businesses and individual consumers. In early 2022, the Fed abandoned this policy of “easy money” and began an aggressive campaign to raise interests to fight inflation. You are a senior financial analyst for a major manufacturer, and the Chief Financial Officer has asked you for your recommendation on whether the company should proceed with the planned construction of a new plant this year.
- Please share how you would approach this assignment. What factors would you consider in your analysis? What sources of information would you consult to gather information and gain perspective? Please share your recommendation to the CFO and provide the three most important factors that drove your decision.
- You must also share constructive observations on discussion contributions from at least two other class members.
- Your grade for this discussion will be based on the thoughtfulness and quality of your comments.
- The following is a link to the Discussion Rubric that will be used to grade your participation in this assignment:
- Discussion Group Rubric.pdf