Poll: The Fed's Rate Decision

More

Today marks the beginning of the Federal Open Market Committee's August meeting to decide monetary policy. The meetings produce minutes that are carefully reviewed by financial masterminds across the nation. But the biggest decision that everyone looks for is whether they decide to change the federal funds rate. That's the overnight interest rate at which banks lend to each other, through the Federal Reserve. It's directly linked to money supply. Since December, that rate has been set at between 0% and 0.25%. Major market players overwhelmingly believe that the rate will remain unchanged. But what do Atlantic Business readers think? Vote after the jump!

Lowering the federal funds rate generally heats up economic activity by increasing the money supply. With the rate so low already, the Fed does not have much room to lower it. Recent indicators that the economy might be heading in the right direction further imply that a mostly symbolic measure of setting the rate target at exactly zero seems unlikely. It also might be too soon to begin raising the rate, as the Fed certainly would not want to wither any possible green shoots. As a result, I'd bet on no change.

But what do you think? Vote below:

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

Social Security: The Greatest Government Policy of All Time?

It's the most effective anti-poverty program in U.S. history. So why do some people hate it?


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Adventures in Legal Weed

Colorado is now well into its first year as the first state to legalize recreational marijuana. How's it going? James Hamblin visits Aspen.

Video

What Makes a Story Great?

The storytellers behind House of CardsandThis American Life reflect on the creative process.

Video

Tracing Sriracha's Origin to Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.

Video

Where Confiscated Wildlife Ends Up

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Business

Just In