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Economics
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Palm Beach State College
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Running head: NAVIGATING A NEW COURSE
Navigating a New Course
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NAVIGATING A NEW COURSE 2
Jerome Powell's decision on interest rate cut raised a lot of critics. However, he said that
the interest rate was meant to benefit the citizens and improve the State's economic conditions.
The organizations, as well as banks, were charging higher interest on the loaners, and that's why
he had to boost inflation by reducing the interest rate. He also said that that was the last cut on
the interest rate, and no adjustment would be made in the future.
Since Powell's decision in early 2019, a lot has changed in the country. However, GDP
has remained constant. This means the cut on interest rate did not affect the domestic income per
capita. Unemployment has increased by 4.4% compared to the previous years. This has been
contributed by the sacking of employees by some companies that were affected by Powell's
decision. The interest rate of all commodities has also increased by 1.5%, as shown in the data
collected in March 2020. Therefore, Powell's decision has both positive and negative impacts.
The economy performed well in 2019. The industrial performance increased by 15% in
2019 after close down in 2018 (Wang, 2019). After the financial adjustment by Powell in 2019,
the economy has improved with an increase in the GDP. However, inflation has not changed a
lot since it is still below 2%, a target set by Powell. But if GDP continues to increase, then the
objective will be achieved by the end of 2020. In March 2020, the central bank recorded a 1.6%
increase in divided without taking into account food, as well as energy prices (Wang, 2019).
However, there are plans to improve the low inflation by applying a cut of 67% by December
2020.
The economic outlook in 2020 is quite promising, as shown by the primary economic
indicators. The unemployment rate is likely to decrease by 3.6%. In the coming years, the
average unemployment rate is expected to decrease by 3.8% in 2022. The current low rate is
because some people have been out of work for long, and going back has landed them to little

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Running head: NAVIGATING A NEW COURSE Navigating a New Course Student’s Name Institutional Affiliation Date NAVIGATING A NEW COURSE 2 Jerome Powell's decision on interest rate cut raised a lot of critics. However, he said that the interest rate was meant to benefit the citizens and improve the State's economic conditions. The organizations, as well as banks, were charging higher interest on the loaners, and that's why he had to boost inflation by reducing the interest rate. He also said that that was the last cut on the interest rate, and no adjustment would be made in the future. Since Powell's decision in early 2019, a lot has changed in the country. However, GDP has remained constant. This means the cut on interest rate did not affect the domestic income per capita. Unemployment has increased by 4.4% compared to the previous years. This has been contributed by the sacking of employees by some companies that were affected by Powell's decision. The interest rate of all commodities has also increased by 1.5%, as shown in the data collected in March 2020. Therefore, Powell's decision has both positive and negative impacts. The economy performed well in 2019. The industrial pe ...
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