The High School Fed Challenge (HSFC) is an unforgettable experience in economic analysis, monetary policy decision making, public speaking and teamwork. For participants, it’s a 25-minute presentation by a team of three to five high school students representing their school in the Federal Reserve’s Second District.

The team’s performance consists of two parts: a 15-minute presentation on the economy—modeled after those made by Federal Reserve decisionmakers—and a 10-minute Q&A session. The format of the presentation is at the discretion of the team; however, each team’s presentation must:

• address current economic conditions;

• forecast near-term changes in economic and financial conditions of critical importance to monetary policy (such as unemployment, inflation, and output);

• identify possible economic, financial, and international issues that might present either positive or negative risks to the economy; and

• recommend a monetary policy response.

A Q&A session follows each presentation. Although judges are free to ask about any relevant topic, they generally ask the following types of questions:

• Follow-up questions related to data, analysis, or recommendations made during the team presentation, such as “Explain your argument that the Fed does not consider the CPI an accurate measure of inflation.”

• Macroeconomic and monetary policy questions, for example, “Is there really a trade-off between inflation and unemployment?”

• Hypothetical questions, like “Suppose GDP declined for the next two quarters; how would that change your monetary policy recommendation?”

• Fed-related questions, such as “Should the Fed have a specific inflation target?”

• Competitive division—Teams are scored by a panel of judges, and winners advance to the next round of presentations; or

• Noncompetitive division—Rules are slightly different (see Noncompetitive division rules below) and teams do not receive a score but have more time with the judges to receive coaching and feedback.

In the Competitive division, the winners of the Second District competition receive an expense-paid trip to Washington, D.C. and compete against the winners from other participating Federal Reserve Districts. In the Noncompetitive division, there are no scores and no winner, but team members receive extensive comments and coaching and a chance to learn from Federal Reserve staff and experienced educators.

In either division, Fed Challenge participants develop skills—the ability to think analytically, to make effective presentations, to work as a team—that are valuable for life.