Fed Challenge is an academic competition that provides high school students (grades 9-12) with an insider's view of how the Fed makes monetary policy. From credit card interest rates to the price of a loaf of bread, the effects of monetary policy, set by the Federal Reserve System, are felt in almost every aspect of our daily lives.

Fed Challenge is designed to promote a better understanding of:

• Our nation's central bank;
• The forces influencing U.S. and international economic conditions; and
• The nuances involved in making monetary policy decisions.

Fed Challenge also will promote and develop:

• Student research, presentation, and critical-thinking skills;
• A closer relationship between high schools and the Reserve Banks;
• Interest in economics as a subject for undergraduate and postgraduate studies and careers.

Fed Challenge begins with regional and District rounds of competition. Each Fed Challenge team, consisting of three to five students, presents an analysis of the current state of the economy and a monetary policy recommendation for the Federal Open Market Committee (FOMC). Following the presentation, judges question each team about their presentation and their knowledge of macroeconomic theory. Federal Reserve Bank economists and officers judge the District competitions.

One Fed Challenge team per participating Federal Reserve District competes at the national competition in Washington, D.C. FOMC members—Federal Reserve governors and Reserve Bank presidents—judge the national finals.

The following criteria are used to evaluate each Fed Challenge team:

• Knowledge of the Federal Reserve, monetary policy, and current economic conditions;
• Response to judges' questions;
• Quality of presentation;
• Quality of research and analysis; and
• Teamwork.