According to a recent survey, economists believe that inflation in the United States will reach the Federal Reserve's 2% target ahead of schedule, in early 2025. This prediction closely follows the central bank's own projections released last week, which also included a slight increase in the unemployment rate by the end of next year. The survey highlights the potential impact of the Fed's monetary policies on the economy, as inflation and interest rates continue to be closely monitored by investors and businesses alike.
Federal Reserve System Inflation Gross Domestic Product 2024
Background
The Federal Reserve System (Fed) is the central bank of the United States. Its primary responsibility is to control inflation and maintain a stable financial system. Inflation is the rate at which the prices of goods and services rise over time. A high inflation rate can erode the value of money and make it difficult for people to afford basic necessities.
The gross domestic product (GDP) is the total market value of all goods and services produced in a country in a given period of time. A high GDP indicates a strong economy. The Fed uses monetary policy tools to influence inflation and GDP. These tools include setting interest rates, buying and selling bonds, and lending money to banks.
Recent Trends
In recent months, inflation has been rising in the United States. The Fed has responded by raising interest rates in an effort to slow inflation. The Fed also expects inflation to reach its target of 2% in early 2025. However, this prediction is based on several assumptions, such as the economy continuing to grow and the labor market remaining strong.
Top 5 FAQs
What is the Federal Reserve System? The Federal Reserve System is the central bank of the United States. It is responsible for controlling inflation and maintaining a stable financial system.
What is inflation? Inflation is the rate at which the prices of goods and services rise over time.
What is the Fed's target inflation rate? The Fed's target inflation rate is 2%.
How does the Fed control inflation? The Fed uses monetary policy tools to control inflation. These tools include setting interest rates, buying and selling bonds, and lending money to banks.
What is the Fed's prediction for inflation in 2024? The Fed predicts that inflation will reach 2% in early 2025. However, this prediction is based on several assumptions, such as the economy continuing to grow and the labor market remaining strong.
The Central Board of Direct Taxes (CBDT) announced an extension for the deadline to file tax audit reports, originally set for September 30, 2024. The new deadline of October 7, 2024, comes in response to the challenges faced by taxpayers with electronic submissions under the Income Tax Act. The extension benefits a wide range of taxpayers and is seen as a significant relief for those struggling with the complexities of the filing process. The CBDT's decision was prompted by reports of technical difficulties and invokes its authority to extend the submission date for all affected taxpayers.
After receiving an overwhelming response from investors, the share allotment for the KRN Heat Exchanger and Refrigeration IPO is expected to be finalised on September 30. The highly subscribed IPO received 211.68 times more bids than the available shares. Investors can check their allotment status through various sources, including the BSE, NSE, and the registrar's portal. The allotment announcement holds significant importance for those who applied for the IPO and are eagerly waiting for an update on their investment.
Despite leaving office, former US President Donald Trump continues to exert his influence on American companies, using tactics such as threats of tariffs and boycotts to push his agenda. The latest target is Deere, a long-standing and iconic American farm equipment brand. Experts warn that Trump's interference could ultimately harm American farmers and go against his own trade deal with China.
A recent ruling by state judges in New Jersey has prevented a couple, Georgia and John McGinty, from suing Uber for injuries they sustained in an accident. The judges cited a clause in Uber's terms of use stating that disputes must be settled through arbitration rather than in court. The McGintys claim they were unaware of this clause and had only agreed to it when their daughter, then 12, accepted the terms prior to ordering food on Uber Eats. This decision potentially sets a precedent for other cases involving companies with similar arbitration clauses.
The CBDT has extended the deadline for filing tax audit reports to October 7, 2024, giving individual and corporate taxpayers an additional week to comply with the Income Tax Act. The move comes after technical difficulties with the e-filing portal resulted in challenges for taxpayers. Tax experts believe that the extension applies to all taxpayers whose deadline for filing income tax returns is also October 31, 2024. Failure to submit the report by the revised deadline could result in penalties under Section 271B of the Income Tax Act.
The Telangana government has released the results for the TS DSC 2024 exams, which were conducted to recruit a total of 11,062 teacher posts. The results were announced after 55 days of the exam, and the scorecards can be accessed on the official website. A total of 2,79,957 candidates had applied for the exams, out of which 87.61 per cent appeared. The government will issue appointment letters on October 9.
A couple from New Jersey, who were left with serious injuries after their Uber crashed, have been told they cannot sue the company because of the terms they accepted when using the app. Despite arguing that they had not understood they were forfeiting their right to sue, state judges ruled that the couple had clicked a "confirm" button multiple times agreeing to Uber's terms of use. The terms state that all claims must be resolved in arbitration, meaning the dispute is settled through a third party rather than in court.
In a recent Techsparks event, Rohit Kapoor, the CEO of Swiggy, spoke about the harmful effects of hustle culture on employees' mental and physical health. He emphasized the need for a work-life balance, as burnout and anxiety have become prevalent due to the constant pressure to work excessively. This discussion sparks a conversation on the negative impacts of prioritizing relentless work over personal well-being and highlights the importance of addressing them.
NTR Commissionerate Police have announced their plan to launch a special App for providing darshan tickets to VVIPs during the upcoming Dasara Navarathri Utsavams in Vijayawada. The App will allow for direct entry and speedy darshan for around 20 categories of people, including Ministers, MPs, and MLAs. This is in an effort to avoid inconvenience to regular devotees and prevent unauthorised entries into the queue lines. However, the proposal for the App is still pending government approval.
In a bid to enhance financial inclusion for differently-abled individuals, the Indian government has partnered with the Indian Sign Language Research and Training Centre (ISLRTC) to develop signs for key financial and banking terms. These signs, including 'mutual fund', 'IPO', and 'bond', are now available on the Sign Learn platform, making it easier for individuals with hearing impairment to participate in financial systems and services. Disability Affairs Secretary Rajesh Aggarwal highlighted the significance of this initiative, stating that it will empower the deaf community to engage fully with financial markets.