Current Events Paper

Current Event Paper

Kirsten Powell

Economics

3/18/15

This article is called “Fed Officials See Slower Inflation Pickup Than Private Economists Do.” In this article, it discusses how much GDP could grow in 2015 and 2016, as well as unemployment slowly rising and will continue to rise between now and by the end of next year. This article also discusses the Fed’s and the private forecaster’s opinion on unemployment, inflation, and GDP. The fed’s believe that GDP is rising and will be higher in 2016 and believes inflation should edge higher during this year and the next. The Fed’s outlook on inflation though is that they expect a slower pickup in inflation than the private group. The private forecasters think unemployment will rise just slightly from the end of this year to the end of 2016. The private forecasters also think that inflation should be higher during this year and 2016.

In this article, the following terms are used: gross domestic product (GDP), inflation, and unemployment. Gross domestic product is the total market value of all final goods and services produced within a nation’s borders in a given time period. In this article, they discuss how the Fed’s and the private forecaster’s believe that GDP could grow, meaning they believe that prices of final goods will rise between this year and 2016. Inflation is defined as an increase in the average level of prices of goods and services. Inflation is described in this article that the Fed’s and the private group think that during this year and the next end of the falling energy prices means inflation should edge higher. Unemployment is the inability of labor force participants to find jobs. The percentages that the range of all forecasts believe unemployment will be at by the end of 2015 and by the end of next year is between 4.8% - 5.3% and 4.5% - 5.2%.

This article explains how our economy is looking and what is being predicted for the economy in the future. I learned that the...