President Donald Trump’s economic plans are causing problems for the Federal Reserve. This week, the central bank will meet to discuss these issues.
Trump’s trade war could lead to higher prices and more people losing their jobs. The Fed must decide if it should lower interest rates to help jobs or raise them to stop inflation.
Many believe the Fed will keep interest rates steady at 4.25% to 4.5%. Economist Dominic Pappalardo said the next economic data will help the Fed decide.
Trump has criticized the Fed for not lowering rates fast enough. He wants to change the Fed’s leadership if necessary.
The economy is currently stable, with low unemployment. However, recent trade issues could change this. The Fed needs more information to make its next move.
Powell, the Fed Chair, has said Trump cannot just remove him without good reason and will hold a news conference soon.
Vocabulary List:
Economy /ɪˈkɒn.ə.mi/ (noun): The system of production distribution and consumption of goods and services in a country.
Inflation /ɪnˈfleɪ.ʃən/ (noun): The rate at which the general level of prices for goods and services is rising and subsequently eroding purchasing power.
Stable /ˈsteɪ.bəl/ (adjective): Not likely to change or fail; firmly established.
Criticized /ˈkrɪtɪˌsaɪzd/ (verb): Expressed disapproval of someone or something.
Leadership /ˈliː.dər.ʃɪp/ (noun): The action of leading a group of people or an organization.
Information /ˌɪn.fəˈmeɪ.ʃən/ (noun): Data or knowledge communicated or received concerning a particular fact or circumstance.
What is causing problems for the Federal Reserve according to the text?
Trump's immigration policies
Trump's economic plans
Global warming
Technological advancements
What action is the Fed considering to address the impact of Trump's trade war?
Lowering interest rates
Raising taxes
Increasing government spending
Reducing import tariffs
What percentage range do many believe the Fed will keep interest rates at?
2% to 3%
3.5% to 4%
4.25% to 4.5%
5% to 6%
Who has criticized the Fed for not lowering rates fast enough?
President Trump
Economist Dominic Pappalardo
Chair Powell
Secretary of Treasury
What is the current state of the economy mentioned in the text?
High inflation
Rising unemployment
Stagnant growth
Stable with low unemployment
What did Powell, the Fed Chair, say about Trump's ability to remove him?
He can remove him without any reason
He cannot remove him without good reason
He can remove him only after a vote by Congress
He cannot remove him under any circumstances
President Trump is satisfied with the Fed's response to his economic plans.
The Fed is facing a decision whether to lower or raise interest rates in response to Trump's policies.
Many economists agree that the Fed will lower interest rates in the upcoming meeting.
The current unemployment rate is high according to the information in the text.
Powell is planning to hold a news conference soon to address the issue of Fed leadership.
The recent trade issues mentioned in the text are expected to have no impact on the economy.
According to the text, what percentage range are many believing the Fed will maintain interest rates at, 4.25% to ?
President Trump wants to change the Fed's leadership if deemed necessary by him. He believes they should be more towards rate cuts.
The economy is currently stable with low unemployment, but there are concerns that recent trade issues could disrupt this stability. The Fed needs more information before determining its move.
Powell, the Fed Chair, stated that President Trump does not have the authority to simply remove him without reason.
The central bank will meet this week to discuss the problems arising from President Trump's plans.
Economist Dominic Pappalardo mentioned in the text that the Fed will consider the next economic data to help them their decision on interest rates.
