Problem:
The Federal Reserve has been considering raising the target Fed Funds interest rate. It has delayed its decision over the past several months trying to determine if the economy is expanding. If the economy is expanding, raising the Fed Funds target rate should be beneficial to depositors and keep inflation in check. However, for every positive signal the economy is recovering, there is another negative economic indicator that offsets the positive one. Please add your thoughts to this discussion, place yourself in the position of the Federal Reserve, what should they do?The Federal Reserve Open Market Committee will meet on Tuesday, October 27 and Wednesday, October 28 to discuss the state of the economy. What will be the outcome, specifically, will they raise the target Fed Funds rate? What do you think?