Is the Fed going to raise interest rates any time soon?

Time: How the Fed Will React to Today’s Surprising Jobs News

Article published: Sep 5, 2014 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Section 2, Macroeconomics

It turns out that there have been less jobs created in August in the US than the average of the 6 months of the first half of 2014. At the same time, unemployment is pretty low at 6.1%, but it seems that the Fed is likely to keep the interest rate at 0.25%, due to lower work force participation rate and because of a pretty depressed Eurozone. There are others, though, who believe it’s high time to increase the interest rates. What do you think?

If you choose this article you can write about unemployment, inflation, labour force participation rate, interest rates, monetary policy and can include the Phillips curve as well besides the AD/AS diagrams, obviously.

Source of image: altrendo images—Getty Images

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