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Paper 1 real-world example: Interest rates, monetary policy and inflation

There has been a breathtaking change in the approach to monetary policy in the US over the last 12 months. On Wednesday 2nd November Jerome Powell the head of the Federal Reserve (US central bank) announced a 0.75% increase in its benchmark lending rate (officially known as the Federal Funds Rate) to between 3.75% and 4%. This is the third time the Federal Reserve has made such a significant increase in interest rates....

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