Discussion Board

The Fed raised the Fed Funds Rate target by .75% today. This is the largest increase since 1994. The stock market react positively to this move today. Most were predicting this significant increase. To answer the questions below, you can use any articles from any source you wish but your write-up should be in your own words. Please answer the following questions:

1. Do you agree with the large increase in the Fed Funds Rate today? Explain

2. Do you think this will be effective in reducing the inflation rate? Explain

3. Do you think we will have a recession in the next year?

4. How high will the Fed go in the next year with the Fed Funds Rate? Explain

List any articles you have used in your answer.