Fed

The Fed is expected to raise interest rates at its next meeting, and it won’t be alone. The ECB has already raised rates, and Japan is expected to follow suit.

John and Andrew Dobson are the creators of the Federal Reserve Simulator, a video game where you play as chair of the central bank. “Marketplace” host Kai Ryssdal tried his hand at running the Fed.

Investors believe that lower interest rates and tax cuts will boost profits in the short term.

But their success will also depend on the overall health of the U.S. economy.

As inflation accelerates, the job market is slowing. That leaves the Federal Reserve in a dilemma over its dual mandate of stabilizing prices and maximizing employment.

“What is completely uncertain is what the destination looks like,” says Mohamed El-Erian, president of Queens’ College, about the U.S. economy.

High interest rates have held back investment in production. They’ve eased, but firms are wary of the effects of potential tariffs and tax cuts.

Kai Ryssdal explores what would happen to the global economy if the Federal Reserve lost its autonomy.

Many are more optimistic and open to new projects because their own costs are easing and they expect consumers to spend more.

Generally once prices rise, they don’t go back down.