Financial issues affect every citizen of a state. Every company should keep track of its economic statuses and interests rates to keep up with the economy of the country. Increasing employment opportunities by encouraging more hiring has a positive effect on the inflation. Inflation cannot be measured explicitly by a single policy because of their other factors that affect inflation. Federal Reserve has been meeting eight times in a year to discuss the economy issue and interest rates. Their primary focus is to control the interest rates to be on the average level with the economy. The move ensures that the company can sustain its employees and provide a suitable environment for other business to thrive. The Federal Reserve holds press conferences every year to look into the economic changes and enhance communication among the members. The company is doing generally well, creating more job opportunities and encouraging more investors. The fiscal policy supports the growth of household’s incomes, confidence, job opportunities, foreign investors and growth and good financial position. The unemployment rates have gone down over the past two years according to the statistics taken by the Federal Reserve. Creating job opportunities for new laborers reduces the work pressure left behind by the aging population.
The company’s focus on controlling their interest rates keeps Federal Reserve at par with the economy. When there is more hiring, more income for the households and more investments, the possibilities of going into a financial crisis are low. When there are employment opportunities, people benefit, and the society benefits. The company focuses on raising the rates and ensures that the employees are accommodated without causing financial instability or inflation. Controlling rates should not be too quick or too slow. If the rates rise too slowly, it will be difficult for the company to level with the economy, sustains its households and maintain the businesses. Increasing the rates too quickly might weaken the economy and cause other unexpected financial crisis of inflation.
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