Fed Raises Key Interest Rate: What Does the Past Data Tell About the Future? An Empirical Study

• Activity Number: 187
• Type: Contributed
• Date/Time: Monday, August 1, 2016 : 10:30 AM to 12:20 PM
• Sponsor: Business and Economic Statistics Section
• Author(s): Rajneesh Rajneesh*
• Companies: SAS Institute
• Keywords: Interest Rate ; Inflation ; Microeconomic ; Mortgage Rate

Abstract

The Federal Reserve announced that it will raise the short-term interest rate. This has been the first time since the financial crisis; the last time Fed raised the interest rate is in June 2006. We will look into the historical data such as unemployment rate, inflation, GDP, mortgage rates and some other micro-economic parameters. We will discuss some insights from this empirical study which will led us to conclude how the future ahead will look for US economy.