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This R&D provides resources on the Federal Reserve and its future monetary policy making decisions. Economists are divided over whether the Fed will raise interest rates in 2016, with some noting that a lower unemployment rate signals a growing economy and the need for a rate hike. However, others note that the lack of wage growth in the economy and inflation means that the Fed should hold off on a rate hike. There are also fears that a premature rate hike could create significant global economic problems. The Fed will hold a meeting on September 21 to consider another rate hike, which would be the second since December.
BBC News – Will the Federal Reserve raise US interest rates? https://t.co/Ug5GkPqkGs
— Turfline/Trading (@Turfline) September 2, 2016
Good morning America. Our top story – Federal Reserve’s John Williams pushes case for US interest rates rise https://t.co/TtupPyPLkf
— Financial Times (@FT) September 7, 2016
Interest rates: We are worrying too much about Federal Reserve https://t.co/IAl0wBnwm6
— C.H. Armour (@DoubleEagle49) September 6, 2016
When 2015 began policymakers figured that the U.S. Federal Reserve would raise interest rates. Optimism about the strength of the U.S. economy, as well as projections that inflation would soon meet the Federal Reserve’s preferable mark of 2%, lent credence to these predictions. However, lower than expected growth during the first quarter, coupled with disappointing unemployment data and stubborn inflation statistics have caused some observers to change their predictions of a rate increase. Instead of expecting an increase in 2015, some are now saying that a change in monetary policy will not occur until next year. The minutes of the Federal Reserve’s meeting last month show that it is divided about what to do and this uncertainty means that extempers could face questions over the next three months about when the Federal Reserve will act, and if it should raise interest rates before the end of the year.
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