Interest rates

by / On January 21, 2020 / In Money and Banking, Undergraduate

APA FORMAT ONLY!!

Interest rates are near an all-time low with the prime rate about 5.5% and the Federal Funds rate at 2.4%. This has helped to stabilize and improve the economy over the past several years, and unemployment is now about where it was in 2000, 4%. The Fed is contemplating increasing interest rates in order to forestall potential inflation. If you were an outside advisor to Fed Chair Jerome Powell what advice would you give to him and why?

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