The Fed Challenge is an academic competition designed to expand the community's understanding of the Federal Reserve System's unique role in the economy and the importance of Federal Open Market Committee decisions.  Students make a presentation on the current state of the economy, suggest prospects for short-term economic conditions, and recommend whether the Federal Reserve should increase, decrease, or take no action with regard to interest rates.  After the presentation, a panel of judges asks questions related to the student's understanding of economics, monetary policy, and the role of the Fed.