Background information and task: Fed officials divided in July over need for more rate hikes, minutes show WASHINGTON, Aug 16 (Reuters) - Federal Reserve officials were divided over the need for more interest rate hikes at the U.S. central bank's July 25-26 meeting, with "some participants" citing the risks to the economy of pushing rates too far even as "most" policymakers continued to prioritize the battle against inflation, according to minutes of the session that were released on Wednesday. 

[Source: https://www.reuters.com/markets/us/fed-policymakers-divided-july-over-need-more-rate-hikesminutes-show-2023-08-16/] 

With regard to such a debate, you have been invited as a guest expert to a commentary column for The Reuters. As the author of this media article, you are to write from the point of view of an economist, communicating the contents included within the article to the public. This will include households and businesses. Follow the following steps to construct your media article: Step 1: Explore readings related to macroeconomic concepts covered within weeks 6 to 10 of our subject. Step 2: Research real current data on economic indicators such as those identified below. That is Data should be the most recently released data (such as the recent 3-4 quarters' Quarterly GDP data of the Dec 22-June 23 wasreleased on July 27, 2023. 

CPI data was released on 28 June 2023. Unemployment data was released in July 2023). Display these indicators within one or more tables/figures. The word content within the tables/figures will not be included A good starting resource to locate such data is the Bureau of Economic Analysis and Bureau of Labor Statistics. o Gross Domestic Product growth rate (https://www.bea.gov/itable/ ) o Unemployment Rate (https://www.bls.gov/charts/employmentsituation/otm-employment-change-by-industry-confidence-intervals.htm ) o Inflation Rate (https://www.bls.gov/charts/consumer-price-index/consumerprice-index-by-category.htm ) o Consumer/business confidence measures (e.g. Lending indicators, retail activity) (optional) o Currency Exchange rate (optional) Put the data into Tables / Diagrams. Please note, you are expected to make your own tables and charts or extract relevant data pertaining to the period under discussion. Step 3: Based on the most recently released data (Dec 22-June 23 Quarterly data), 

1), Review the inflation rate in the U.S.. Identify which types of products/services contribute most to the increase or decrease in the inflation rate). Give possible reasons why these products/services contribute the most. 

2), Identify the change in unemployment in different population groups. Give possible reasons why these groups' unemployment changes. 

3), Review which components contribute most and least to the change in Real GDP. Give possible reasons why these components change. Apply relevant AD-AS models with graphs when necessary. 

Step 4: Research U.S. current monetary and fiscal policies (that is, the policies implemented in the past 6 months) and analyse whether these policies have helped the economy (connect your conclusion with the data you analysed) and are appropriate to be continued, given the Fed's dual mandate: maximum employment and price stability. Please explain why for your opinion based on your evaluations. Apply AD-AS model with graphs to interpret your judgement. Please note: The Tables, Charts and relevant AD-AS model(s) is/are to be included within an appendix and they should be numbered clearly and referred to and interpreted as necessary in the article. Please ensure these are clearly labelled with headings and referred to within the body of the Media Article.

 

Based on this background and link, I would like to know the specific analysis of the completed article and how the AD-AS model is drawn and changed.

Answer rating: 100% (QA)

Answer The completed article provides an indepth analysis of the recent debate among Federal Reserve officials regarding the need for more interest ra... View the full answer