The U.S. Federal Reserve, more specifically the Federal Open Market Committee (FOMC), met in March (2023)...

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The U.S. Federal Reserve, more specifically the Federal Open Market Committee (FOMC), met in March (2023) and decided to raise the short-term federal funds rate (target) by 1/4 percent point which would bring the rates to between 4.75% and 5%. There are various predictions about the Feds future action on rates - the FOMC will have a policy meeting in May. Some economists predict rates hike will continue as the economy is growing and inflation pressure - increase in wages and other prices - needs to be curtailed. Others predict the rate increases will taper off later this year because inflation is getting contained, the unemployment rate is rising. Please discuss the issue: Do you agree with the arguments? What is your prediction on the interest rates? It would be the best if you could use data or specific examples to support your points. The U.S. Federal Reserve, more specifically the Federal Open Market Committee (FOMC), met in March (2023) and decided to raise the short-term federal funds rate (target) by 1/4 percent point which would bring the rates to between 4.75% and 5%. There are various predictions about the Feds future action on rates - the FOMC will have a policy meeting in May. Some economists predict rates hike will continue as the economy is growing and inflation pressure - increase in wages and other prices - needs to be curtailed. Others predict the rate increases will taper off later this year because inflation is getting contained, the unemployment rate is rising. Please discuss the issue: Do you agree with the arguments? What is your prediction on the interest rates? It would be the best if you could use data or specific examples to support your points.

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The Federal Reserve typically adjusts interest rates based on its assessment of the economy and its goals for inflation and employment The decision to raise or lower interest rates depends on a variet... View the full answer