Summary
Today, CNN reported that the Federal Reserve is not going to raise the key interest rate, as previously thought. In December of last year, Janet Yellen, leader of the Fed’s committee, forecasted a 2.4% increase in 2016. She also stated that the economy would raise its rates four times. But as of today, the Fed’s now estimate two rate hikes for the remainder or the year, and a 2.2% growth rather than 2.4%. Yellen also stated that any rates in the future will be gradual in accordance to the slowdown and volatility of American growth. During her speech, the Dow raised 125 points. The article also discussed unemployment, stating that, although, unemployment is down, as it fell 4.9% in January, but the job market will continue to improve. Inflation was also mentioned, noting that inflation is currently 1.3%, a little below the central bank’s target of 2%, while the Fed forecasts inflation only to reach 1.6%. …show more content…
America is obviously still at risk for more economic emergencies, and if such emergencies become apparent, America's financial well-being will be severely hurt. I believe that the Federal Reserve may be worried about the U.S.’s economic condition, and therefore leaves the rates low for a longer period of time, in order for Americans to spend more
Today, CNN reported that the Federal Reserve is not going to raise the key interest rate, as previously thought. In December of last year, Janet Yellen, leader of the Fed’s committee, forecasted a 2.4% increase in 2016. She also stated that the economy would raise its rates four times. But as of today, the Fed’s now estimate two rate hikes for the remainder or the year, and a 2.2% growth rather than 2.4%. Yellen also stated that any rates in the future will be gradual in accordance to the slowdown and volatility of American growth. During her speech, the Dow raised 125 points. The article also discussed unemployment, stating that, although, unemployment is down, as it fell 4.9% in January, but the job market will continue to improve. Inflation was also mentioned, noting that inflation is currently 1.3%, a little below the central bank’s target of 2%, while the Fed forecasts inflation only to reach 1.6%. …show more content…
America is obviously still at risk for more economic emergencies, and if such emergencies become apparent, America's financial well-being will be severely hurt. I believe that the Federal Reserve may be worried about the U.S.’s economic condition, and therefore leaves the rates low for a longer period of time, in order for Americans to spend more