Level 1 — Absolute Beginner
The Federal Reserve is a group that decides interest rates in the United States. On Wednesday, they told everyone their new decision.
Most experts thought the Fed would keep rates the same. This would be the fifth time in a row they did not change them.
On the same day, oil prices went up a lot because of trouble in the Middle East. This made stock markets nervous.
Big companies also share their money news this week. Investors are watching all of this very closely.
- Federal Reserve
- the central bank of the United States, which sets interest rates
- interest rate
- the extra money charged or paid when borrowing or saving money
- experts
- people who know a lot about a certain subject
- decision
- a choice made after thinking about something
- stock market
- a place where shares of companies are bought and sold
- nervous
- feeling worried or uneasy
- investors
- people who put money into companies hoping to earn more back
- companies
- businesses that sell products or services
Level 2 — Elementary
The Federal Reserve was scheduled to announce its interest rate decision on Wednesday afternoon, with Chair Kevin Warsh set to hold a press conference shortly afterward to explain the reasoning.
Economists widely expected the Fed to hold its benchmark rate steady for a fifth consecutive meeting, even though some officials have pushed for a possible increase later this year.
The announcement happened to fall on the same day that Iran's missile attack on a US base in Jordan sent oil prices climbing sharply, adding a new source of uncertainty for policymakers.
Investors were also watching earnings reports from major technology companies this week, hoping for clues about how much they plan to keep spending on artificial intelligence.
- scheduled
- planned to happen at a particular time
- reasoning
- the thinking or explanation behind a decision
- economists
- experts who study how money, goods, and services move in an economy
- benchmark
- a standard or reference point used for comparison
- consecutive
- following one after another without a break
- policymakers
- people who create official rules or plans, such as government leaders
- earnings
- the profit a company reports over a period of time
- artificial intelligence
- computer systems designed to perform tasks that normally need human thinking
Level 3 — Intermediate
The Federal Open Market Committee was scheduled to reveal its interest rate decision Wednesday afternoon, with Chair Kevin Warsh set to face reporters roughly thirty minutes later to justify the committee's reasoning.
Economists polled ahead of the meeting largely expected the Fed to hold its benchmark rate steady at 3.5 to 3.75 percent for a fifth consecutive gathering, even as a sizeable faction of officials has signaled openness to a hike as early as September.
The timing proved awkward: the announcement coincided with Iran's missile strike on a US base in Jordan, which sent Brent crude climbing toward 90 dollars a barrel and complicated the inflation picture policymakers must weigh.
Markets were further on edge ahead of earnings from major technology companies this week, as investors sought reassurance that enormous spending on artificial intelligence infrastructure would eventually pay off.
- polled
- surveyed for their opinions or predictions
- faction
- a smaller group within a larger organization that shares a particular view
- signaled
- indicated or hinted at an intention
- coincided
- happened at the same time as something else
- inflation
- a general and sustained rise in prices across an economy
- weigh
- to consider carefully before making a decision
- reassurance
- words or actions that reduce someone's doubts or fears
- infrastructure
- the basic physical systems needed for an organization or economy to function
Level 4 — Advanced
The Federal Open Market Committee was slated to unveil its interest rate decision Wednesday afternoon, with Chair Kevin Warsh scheduled to field questions from reporters roughly thirty minutes later to elucidate the committee's rationale.
Economists surveyed ahead of the gathering overwhelmingly anticipated the Fed would hold its benchmark rate steady at 3.5 to 3.75 percent for a fifth consecutive meeting, even as a sizeable contingent of officials has signaled receptiveness to a hike as early as September, hinting at likely dissents.
The timing proved inopportune: the announcement coincided with Iran's missile strike on a US installation in Jordan, which propelled Brent crude toward 90 dollars a barrel and further muddied the inflation calculus confronting policymakers already navigating a fraught macroeconomic landscape.
Markets remained additionally on edge ahead of earnings disclosures from major technology firms this week, as investors sought assurance that colossal outlays on artificial intelligence infrastructure would ultimately yield commensurate returns.
- slated
- scheduled or planned for a particular time
- elucidate
- to make something clear by explaining it in detail
- rationale
- the underlying set of reasons for a course of action
- contingent
- a group of people, especially representing a larger body
- receptiveness
- willingness to consider or accept new ideas
- inopportune
- occurring at an unsuitable or badly timed moment
- calculus
- here, a way of thinking through a decision by weighing many factors
- commensurate
- proportionate in size or degree to something else
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