In October, the Ithaca College economics department fielded a team of five students to compete for the second time in the U. S. Federal Reserve’s College Fed Challenge competition. Our team placed third in this year’s regional Fed Challenge Competition (which is considered “placing” in the competition).

The Federal Reserve (or, the “Fed”) is the Central Bank of the United States. The competition is comprised of a team presentation simulating a Fed Open Market Committee meeting to discuss current economic conditions (such as likelihood of a recession, expected future inflation rate, effects of the sub-prime lending crisis, et cetera) and to make a recommendation for the Fed’s monetary policy actions for the upcoming period.

This was an out-of-classroom academic experience that involved a semester’s worth of preparation and planning. It culminated in a trip to Buffalo for the first round of what is a national competition. Team members included Shigdha Dutt, Lauren Hudak, Jack Drew, Ivan Govedarov, Ha Phuong Phan (with reserves Ryan Bailey and Evan Palmer), and professor Roger Hinderliter and myself served as the team’s coach and coordinator. Students had to evaluate pertinent economic information, assess it, synthesize it and take a position on the best course of action for the Federal Reserve. After the 15-minute presentation, a panel of judges asks the students questions about their presentation, current economic conditions and the Federal Reserve in general.  

Our team was very competitive against eventual national runner-up, SUNY Geneseo. Our students received numerous compliments after the competition. Thus, I believe our second year effort was very successful. We also discussed what the judges were looking for after we returned from Buffalo. I believe we have the foundation now to field a team that can do even better (and, hopefully, win the first round of competition).

Students from the Fed Challenge team said they enjoyed the challenge because unlike learning from dated textbook examples, this project encouraged active learning. They had to make predictions based on information available to monetary policy-makers. They also said that it was interesting to analyze data on economic indicators and predict the actions of the Federal Reserve before the Fed’s October meeting, but it was more exciting to see how the different elements of economy intertwined when evaluating economic growth and price stability at the challenge.

They also said that each team member played a crucial role, contributing on topics other than just the ones they were assigned to. The students focused on and became well-versed in technical details as well as statistical data. One student said the team members helped each other on research extensively, that he had seldom worked with a team with such incredible spirit.

 Right now, we’re starting to look for new potential members of our Ithaca College Fed Challenge team. Students who are interested in joining the team or enrolling in the Fed Challenge course may contact me.

Given how concerned people are with how the economy is doing, as well as the important role of the Federal Reserve, I find it hard to think of any more relevant academic activity for economics students.

Patrick Meister is an associate professor of economics. E-mail him at pmeister@ithaca.edu.