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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

• 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 12

Appointed by District Board of Directors Approved by the Board of Governors

Five-Year Term

John C. Williams

President and CEO Federal Reserve Bank

of San Francisco

2011 - Present

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2013 Board of Directors of the Federal Reserve Bank of San Francisco

Salt Lake City Branch

Scott Hymas (2013) Chief Executive Officer RC Willey Salt Lake City, Utah

Chairman of the Board

Albert Wada (2013) Chairman & CEO Wada Farms, Inc. Pingree, Idaho

Josh England (2014) Chief Financial Officer C.R. England, Inc. Salt Lake City, Utah

Damon G. Miller (2014) Utah Market President U.S. Bank Salt Lake City, Utah

Bradley Wiskirchen (2015) Chief Executive Officer Keynetics, Inc. Boise, Idaho

Susan Mooney Johnson (2015) President Futura Industries Clearfield, Utah

Patrick F. Keenan (2014) Chief Financial Officer Rio Tinto Kennecott Utah Copper South Jordan, Utah

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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 15

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: albertw@wadafarms.com Website: www.wadafarms.com

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