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Predicting the Fed's Actions :

Assume the following conditions. The last time the FOMC met, it decided to raise interest rates.

At that time, economic growth was very strong and so inflation was relatively high. Since the last meeting, economic growth has weakened, and the unemployment rate will likely rise by 1 percentage point over the quarter. The FOMC's next meeting is tomorrow.

Do you think the FOMC will revise its targeted federal funds rate? If so, how?

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  • Category:- Basic Finance
  • Reference No.:- M91981985

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