News Release

CHICAGO—High school teams from the five states that comprise the Federal Reserve's Seventh District competed against other schools within their states to become champions of the Federal Reserve's High School Fed Challenge competition.

The competitions, held throughout April, gave teams from participating schools a chance to test their knowledge of the economy and the function of the Federal Reserve System. The teams will represent their states in the High School Fed Challenge district championship on May 1 at the Federal Reserve Bank of Chicago.

The Fed Challenge was developed to encourage greater awareness among students of how the U.S. economy functions and the role of the Federal Reserve in the economy. Each team is required to analyze current economic data, develop a monetary policy recommendation and defend that recommendation in front of a panel of judges. The team prepares a 25-minute demonstration, which includes a 15-minute presentation on the economy and a 10-minute period where students answer questions from the judges.

Presentations must include a discussion of economic conditions as of the day of the competition; a forecast of near-term changes in economic, financial and international conditions, such as unemployment and inflation; identification of conditions or situations that warrant attention in the formulation of monetary policy; and a recommendation as to whether the Fed should move to raise or lower interest rates.

The winner of the district championship will go on to compete in the national Fed Challenge Competition, May 19, against teams from participating 12 Federal Reserve Banks across the U.S. at the Federal Reserve Board in Washington, D.C. Judges at the final competition will include members of the Federal Reserve Board of Governors and presidents of Federal Reserve Banks.

To learn more about the Fed Challenge, visit the Chicago Fed's Web site at: http://www.chicagofed.org/education/hsfc.cfm

Federal Reserve Bank of Chicago Background

The Federal Reserve Bank of Chicago is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D.C., make up the nation's central bank. The Chicago Reserve Bank serves the seventh Federal Reserve District, which encompasses the northern portions of Illinois and Indiana, southern Wisconsin, the Lower Peninsula of Michigan, and all of Iowa. In addition to participation in the formulation of monetary policy, each Reserve Bank supervises member banks and bank holding companies, provides financial services to depository institutions and the U.S. government, and monitors economic conditions in its District.