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• Wada Farms
Wada Farms
– Grows fresh and processing potatoes, wheat, corn,
alfalfa in Eastern Idaho
• Wada Farms Potatoes
– Packs and ships fresh table stock potatoes to US
markets and some export (Canada, Mexico, Southeast
Asia)
• Wada Farms Marketing
– Sales, marketing and logistics for fresh potatoes,
sweet potatoes and onions sourced from across the
US, Canada
• Idahoan Foods (partnership)
– Dehydrated potato processor, plants in ID
and NV
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Why Business People and Students
Should Understand the Fed
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Do you have a college loan?
Are you making car payments?
Do you want a good paying job?
Do you plan on getting married and starting a family?
Would you like to buy a home?
Do you plan to save and invest?
Do you plan on starting you own business?
Will you be traveling abroad?
Do you plan to retire comfortably some day?
• Will you need money?
• What will your money cost?
• What will your money return?
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What You Should Know About the Fed
– Independent within the government
• Its actions do not require approval of the
President or Congress
• Not funded by the federal government (us tax
payers)
• What does this mean for business and you
students?
– Monetary policy is set in an objective, non-partisan
basis
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Show Me the Money
• We all need a medium of currency to transact
business, to buy and sell
– The Fed is the Central Bank for banks
– The Fed maintains the checking account of the US
Treasury.
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Regulate the Money
• The Fed’s Cash Operations monitors the condition of
currency and either sends it back into circulation or
destroys it.
• Businesses and consumers have ready access to cash
availability during peak periods of demand, like the
Christmas shopping season
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Regulate the Banks
• As a regulator for financial institutions, the Fed
establishes and audits the rules of conduct that
these institutions must follow to ensure
commercial banks are operating appropriately,
and are safe and sound
• The Reserve Requirement
– In order to combat the problems of insufficient cash
reserves (and the inability to pay depositors) that
were faced before the creation of the Federal Reserve
System, banks now have to set aside a certain amount
of cash in "reserve
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Give Me the Money
• Before the Fed was created, banks were
collapsing and the economy swung wildly
from one extreme to the next.
• The Fed provides a stabilizing force in times of
recession and “irrational exuberance”
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Set Monetary Policy
• The Fed has a dual mandate:
– Maximum employment (High productivity, input and
output, GDP) and demand for goods and services
(PCE, Personal Consumption Expenditures)
– Stable prices (low inflation)
• Moderate long term interest rates
• The FOMC sets Fed Funds interest rates
accordingly, either lowering or increasing to
generate more or less cash in the system
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Give Me an Opportunity
• Stable currency provides a friendly business
environment
– Global trading attitudes toward the dollar as the
currency of choice, as well as attitudes toward the
Fed, provides for stability
– Accommodative policies helping recovery
• Low interest rates
• QE programs, most recently purchases of MBS, further
lowering long term interest rates
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The Fed is a “Democratic” Institution
• While the FOMC and many Fed economists
are in Washington DC, 12 Reserve Bank
Districts across the country are the delivery
system for the Fed.
– Reserve Bank district boards, along with the
district branch boards are the eyes and ears
for feedback to the FOMC
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John C. Williams
President and CEO
Federal Reserve Bank
of San Francisco
2011 - Present
Appointed by District Board of Directors
Approved by the Board of Governors
Five-Year Term
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2013 Board of Directors of the
Federal Reserve Bank of San Francisco
Salt Lake City Branch
Chairman of the Board
Scott Hymas (2013)
Chief Executive Officer
RC Willey
Salt Lake City, Utah
Albert Wada (2013)
Chairman & CEO
Wada Farms, Inc.
Pingree, Idaho
Susan Mooney Johnson (2015)
President
Futura Industries
Clearfield, Utah
Damon G. Miller (2014)
Utah Market President
U.S. Bank
Salt Lake City, Utah
Patrick F. Keenan (2014)
Chief Financial Officer
Rio Tinto Kennecott Utah
Copper
South Jordan, Utah
Josh England (2014)
Chief Financial Officer
C.R. England, Inc.
Salt Lake City, Utah
Bradley Wiskirchen (2015)
Chief Executive Officer
Keynetics, Inc.
Boise, Idaho
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How Monetary Policy Affects the
Economy and You
• A change in the fed funds rate will affect short
and long term rates, the foreign exchange
value of the dollar, and stock prices. This will
affect households’, businesses’ and your
spending decisions, affecting growth in
aggregate demand and the economy
– Even expectations of Fed policy actions may affect
financial markets
– FOMC Chairman Bernanke’s move for Fed
transparency has increased stability
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How the Fed Affects You as a Student
and Future Business Person
• Cost of higher education, student loans
• Healthy, expanding economy creates jobs
• Fed mandates of maximum employment and
stable prices, low interest rates are fuel for
this nation to grow GDP at rates that
accommodate higher demand and more
production without incurring excessive
inflation, ie. Jobs!
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Don’t be left “Home Alone”!
• College graduates need more than HOPE! You
need ROI!
• You must work hard to gain competitive
advantage in today’s tough job market!
• Excellence in grades, knowledge, training
and communications skills
• There is currently a pent-up supply of the
unemployed to limited employment demand
• How will YOU do in your job search?
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Best Wishes for Your Future
Success!
Albert Wada
Cell: 208.681.9232 (txt msg also)
Email: [email protected]
Website: www.wadafarms.com
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