Please help with these questions. 1. What is the relevance of…
Question Answered step-by-step Please help with these questions. 1. What is the relevance of… Please help with these questions. 1. What is the relevance of article to a subject we have or are covering in class.2. Effectively connect the article to the subject in class citing areas we’ve discussed or content in the chapter.3. Put yourself in the position of a leader for the company you chose for your team project, how would it effect your business and what actions would you take if any, to address the matter. I will paste the Wall Street Journal Article in the bottom, but here are some notes to help you:For question 3 we chose the company that produces metal water bottles, and our main customers are Costco, Walmart, and Target. Here is the article. Thank you! Inflation’s Peak Won’t Give Us a Rate Reprieve The only thing worse than rising inflation and rates might be falling inflation and rising rates Raising interest rates while inflation is going up is easy for the Federal Reserve to justify. Raising them when inflation is going down might be harder. The Labor Department on Tuesday said consumer prices rose a seasonally adjusted 1.2% in March from a month earlier, putting them 8.5% above their year-earlier level for the fastest annual gain since December 1981. Core prices, which exclude food and energy items to better reflect inflation’s trend (as well as the life experiences of those who neither drive nor eat) were up 6.5% from a year earlier, for the biggest gain since August 1982.The rapid shift higher in inflationin March of last year core prices were up by just 1.6% from a year earlieris Exhibit A for why Fed policy makers are moving to raise overnight rates sharply this year, and are planning to start reducing the central bank’s Treasury and mortgage-security holdings as well. As of their meeting last month, Fed officials projected they would raise their target range on overnight rates to nearly 2% by the end of this year, whereas as recently as September they forecast they would be leaving rates near zero. Through the fall expectations that the rise in inflation would soon turn out to be transitory proved to be, well, transitory.Yet March might prove to be inflation’s high-water mark. Gasoline prices have moderated recently, which should help cool overall inflation. Used-car prices, which have been a major source of inflation, finally have begun easing. More broadly, many of the shortages and shipping snarls that left retailers chasing after inventory have shown signs of easing. That appears to be cooling inflation in a broad array of goods.The year-over-year comparisons are also about to start getting less severe. The big move up in inflation began last April, when core prices rose 0.9% from a month earliera jump that remains the largest since September 1981. Next month that gain will no longer be part of the year-over-year equation; even if core prices register the same monthly gain in April as they did in March, their year-over-year gain will slip to 5.9%.It is possible to imagine a situation where the combination of easing shortages and easier year-over-year comparisons will bring inflation down fairly rapidly in the months aheadespecially if some of the categories that saw big price increases through the course of the pandemic, such as used cars, give back more of their gains. That would, of course, be a welcome prospect for the Fed, but it wouldn’t necessarily mean that inflationary pressures have been swept away. Indeed, so long as the unemployment rate keeps going lowerand at this point it looks as if it will continue to do thatthe Fed will probably be inclined to keep raising rates.Relaying that message to the public might not be easy. Accounting Business Managerial Accounting BUS 011A Share QuestionEmailCopy link Comments (0)
