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.
As the Indian government holds edible oil firms responsible for the rise in prices amid huge stockpiles, recent reports by the SEAI and expert predictions suggest that the country's import of edible oil and pulses is steadily decreasing. In line with this, Adani Wilmar has announced investments worth Rs.600 Crore in the edible oil and solar sectors. While the government's ambitious goal of achieving a USD 55 trillion economy by 2025 seems promising, doubts have been raised about the success of their Digital Agriculture Mission, with the AIKS expressing concerns. The agricultural sector's reactions to the Union Budget 2024 also reflect a forward-looking attitude towards the use of high-yielding pulses and oilseeds as a means to reduce imports.
The Indian Railways has approved a bonus of Rs 2,028.57 crore for 11 lakh employees to recognize their hard work and dedication in enhancing the performance of the sector. The bonus, equivalent to 78 days' wages, will be distributed among various categories of employees, including track maintainers, loco pilots, and station masters. This decision comes after the Railways achieved record milestones and advancements in technology during the 2023-2024 financial year, leading to improvements in infrastructure and operational efficiency. The bonus is a testament to the Indian Railways' dedication to its employees and recognizing their contributions towards its growth.
With an increasing number of children and adults using technology in their daily lives, two local churches are hosting events to educate and equip families on safe practices. The Redemption Church and Trinity Lutheran Church & School will be hosting events focusing on protecting young eyes and creating tech-ready homes. New Mt. Moriah Baptist Church and Immanuel Presbyterian Church are also hosting events for their respective congregations on the subject. With a rise in technology use, it is important for families to be informed and prepared to create a safe online environment.
A recent agreement has been signed between Nepal, India, and Bangladesh, allowing for the creation of a cross-border electricity trade. This alliance is expected to significantly benefit India's leading oil companies, IOC and Reliance, as well as other major players in the energy industry, such as IREDA, SJVN, and GMR. This development comes amidst the Indian government's decision to scrap a Rs 30,000 crore oil company support, as well as reports of a minor oil leak that has been contained by ONGC. In light of these events, the IOC plans to raise its refining capacity by 25% to meet India's growing oil demand, while GE Power India wins a lucrative Rs 240 crore project in Nepal.
PETRONAS, Malaysia's national oil and gas company, reported a revenue of RM171.7bil for the first half of the year, with a decrease in net profit by 19.2% year-on-year. However, the company remains focused on ensuring energy security and fostering partnerships to drive Malaysia's growth. The company also reported a 20% increase in capital investments to RM25.7bil and a 3.3% increase in total assets to RM798.6bil as of June 30, 2024, despite facing challenges such as foreign exchange impact and higher taxation.
In a commendable move, Prime Minister Narendra Modi-led Cabinet has approved a payment of Rs. 2028.57 crore, equivalent to 78 days' wages, as a performance-linked bonus for 11.72 lakh non-gazetted Indian Railway employees. Recognizing the railway's record performance in 2023-2024, this decision is aimed at motivating and incentivizing the employees to continue their hard work. With improving infrastructure and technology, the Indian Railways loaded a record cargo of 1588 Million Tonnes and carried nearly 6.7 Billion Passengers, making this bonus a well-deserved reward for their efforts.
In a move towards utilizing clean energy, Google has partnered with Adani Group to source clean power for its cloud services and operations in India. Adani Group will supply 61.4 megawatt of electricity from a new solar-wind hybrid project located at its renewable energy park in Gujarat. This partnership will help Google achieve its target of running operations entirely on clean energy by 2030. The project is expected to start commercial operations in the third quarter of 2025. Additionally, Google has also announced a partnership with CleanMax to source 125.4 MW of clean energy for its offices and cloud regions in India.
Silversea, a popular luxury cruise line, has announced plans to open a 150 room hotel in the southernmost city of Puerto Williams, Chile by the end of 2025. The hotel is set to be the first Silversea branded property and will offer stunning views of the Beagle Channel and snow-capped Patagonian mountains. This development marks the company's commitment to innovation and excellence in the luxury travel industry and will greatly enhance the Antarctic travel experience for guests during the peak season.
In a groundbreaking move, tech giant Google and CleanMax have joined forces to develop sustainable renewable energy capacity of 125.4 GW. Under this partnership, CleanMax will establish a hybrid project featuring solar and wind energy in Rajasthan and Karnataka. This project will support Google's goal to operate on carbon-free energy by 2030 and is expected to reduce CO2 emissions by 250,000 tons annually. This venture highlights the importance of strategic collaborations in driving sustainable change and mitigating the effects of climate change.
As the world of luxury fashion becomes increasingly complex and exclusive, fashion sourcers like Gab Waller have emerged as essential players for those seeking the most coveted and viral items. With a growing demand for her specialized services, Waller has built a successful business that grants clients access to hard-to-find products through her extensive connections and insider knowledge. However, as demand continues to rise, Waller faces challenges with the current limitations of her business model. Despite this, Waller's impressive growth and high-profile clients demonstrate the increasing demand for her unique and valuable services in the luxury market.