Federal Reserve and Economic Growth “At the start of 2017, the forecasters correctly predicted the Federal Reserve would raise interest rates three times by the end of the year, and their other forecasts were all reasonably close to the mark.
They saw a 4.3% unemployment rate at year’s end. It was actually 4.1%. They thought GDP would expand 2.3% on the year, versus actual growth of 2.5%. They saw headline inflation of 1.9% and core inflation of 1.7%, versus actual figures of 1.7% and 1.5%.”
Wall Street Journal
Based on the above information, analyze the five key indicators of Economic Growth: federal-funds rate, unemployment rate, GDP growth, inflation, core inflation.
Also, discuss how these 5 indicators impact real interest rates.
