As a manager of a firm, you are concerned about a potential increase in interest rates, which would reduce the demand for your firm's products. The Fed is scheduled to meet in one week to assess economic conditions and set monetary policy. Economic growth has been high, but inflation has also increased from three percent to five percent (annualized) over the last four months. The level of unemployment is very low and cannot possibly go much lower.
You are to analyze the situation and propose a recommendation for the company.