On Nov. 28, the team, coached by Economics Department Chair John Graham, took on Northwestern University, Boston College and Virginia Commonwealth in the national finals of the 2006 College Fed Challenge in Washington, D.C. their first-ever trip to this level of competition and came in third. To be selected for the national finals, the team first had to win the New York Federal Reserve District competition, which it did on Nov. 17, in New York City. In that competition, which began with a field of 26 colleges, the R-N team of eight undergraduate students had to survive two initial rounds of competition, before ultimately defeating SUNY-Geneseo, Rutgers-New Brunswick and New York University-Stern in the NY district finals.
Between the two competitions, the R-N Fed Challenge team brought home a total of $25,000 in prize money ($12,000 to be divided among the students, and $13,000 for the campus economics department), as well as a trophy from the New York Federal Reserve Bank. The prize money is provided by the Moodys Foundation.
This was an especially impressive showing considering that the team has competed in the College Fed Challenge only once before, last year, when it placed second of five schools in the first round. In last years championship, SUNY-Geneseo won, with Rutgers-New Brunswick placing second. Neither of those two made the 2006 national finals.
As you can imagine, this year both Rutgers-New Brunswick and Geneseo were heavily favored to be the top two teams. Our win was a real surprise to many (although not to us) since we had never made it to the finals before, explains Graham, a South Orange resident.
The eight members of the team are: Billy Joseph, of Jersey City, a junior economics and accounting major; Miodrag Mike Kapor of Edison, a senior economics major; Kristina Lopez of Elizabeth, a senior finance major; Jared Mijares of Teaneck, a junior economics major; Ron Mosseri of New York City, who will graduate in December with an economics degree; Sneha Pendse of Parsippany, a senior finance and computer science major; Anthony Restaino of Nutley, a senior majoring in economics; and Andrew Verdon, a junior from Marlboro majoring in economics and mathematics.
The first R-N Fed Challenge team was started last year by Newark College of Arts and Sciences alumnus Peter Eberhard, 06, who now works for the Federal Reserve Board in Washington, according to Graham. This years team was chosen last spring and started meeting in summer 2006, explain Verdon and Restaino. We met every week for at least four hours, notes Kapor, who was also on last years team, adding, This year we did not expect to advance to the finals.
The team was divided into different research sub-teams, such as economic activity, gross domestic product, and labor markets. It was more work than a course, said Verdon and Restaino. But in many respects, it was more educational than a traditional course, explains Pendse. Learning about economics in class is one thing, but applying it practically to make policy decisions is something else altogether, she says.
To develop their 20-minute presentation for the competitions, team members pooled their research findings, analyzed and summarized their data, developed an economic forecast and then, based on all that work, made a proposal on what action the Fed should take concerning the interest rate: raise it, lower it or maintain the rate as it is. The actual competition was a nerve-racking experience, states Mijares. It was almost frightening to make a presentation before a panel of judges consisting of Wall Street economists, respected academics, or Fed officials.
In each of the two competitions, five members from each team act as if they are the monetary policy committee of the Federal Reserve, known as the Federal Open Market Committee, which makes the nations monetary decisions. Team members give a 20-minute presentation, including Power Points of data charts, and then conclude each presentation with a recommendation concerning the prime interest rate; based on their research, the R-N team opted to hold the line on the rate.
Finally the panel of judges questions each team for 15 minutes, grilling them not only on their presentation and recommendation, but also the teams overall knowledge of macroeconomics, how the Federal Reserve operates, and the major monetary issues facing the Fed. Each team is then scored in several categories, including teamwork, knowledge, and presentation skills.
The New York District finals were taped and will be available on DVD in the future.
Since all but three team members will be graduating this year, Graham and the team are already recruiting students for the 2007 Fed Challenge. Since the 2007 group, like its predecessors, will meet early Friday mornings, volunteers are forewarned to be ready to give up your Thursday nights and develop a real work ethic, say Restaino and Verdon. But all of the teammates echo Pendses reaction: It was an amazing experience and a privilege to be a part of this team.