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The Federal Reserve Chairman And The Board

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The Federal Reserve Chairman and the Board
The position of the Federal Reserve is that the economy is beginning to expand and that the
interim recessions that have been such a large part of the landscape over the past few years are
finally going away. What that means however is that it is very important to make sure that there
is a way to increase the interest rates to ensure that there is going to be a market that is geared
more towards the profits of the banks. When the banks are making more money, there will also
be an increase in inflation. What that means for the long term is that companies will also begin to
borrow and that there is going to be more investment. My long-term prediction is that the
economy based on the new president as well will continue to expand and that there will be a
boom in the economy that will be back to 2004 levels.
Companies always like to make investments when they are going to be able to borrow at a
reduced cost. What that means is that if companies have the money on hand they will expand.
However, if they do not have the money on hand they will have to borrow and that means that
they will pay more over the term of the borrowing with the higher interest rates.
References
Johnson, Robert R., Gerald R. Jensen, and Luis Garcia-Feijoo. "The Association between
Federal Reserve Policy and Sector Returns." Journal of Financial Service Professionals 70.3
(2016): 83-88.
Rogers, John H., Bo Sun, and Lucas F. Husted. Measuring Monetary Policy Uncertainty: The
Federal Reserve, January 1985-January 2016. Board of Governors of the Federal Reserve
System (US), 2016.

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The Federal Reserve Chairman and the Board The position of the Federal Reserve is that the economy is beginning to expand and that the interim recessions that have been such a large part of the landscape over the past few years are finally going away. What that means however is that it is very impor ...
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