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

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

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Article published: Sep 5, 2014 – out of date: no longer suitable for your IB Economics commentary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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By | 2017-08-23T11:03:41+00:00 September 8th, 2014|Macro|Comments Off on Is the Fed going to raise interest rates any time soon?

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 8 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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