Business English News 49 - Inflation and Interest Rates

In this Business English News lesson we look at business English vocabulary related to the economy, particularly the relationship between inflation and interest rates.

Government spending throughout 2021 was a boon to the business sector. Jobs returned, production rose, and many countries ended the year on a positive note. But growth – and years of low interest rates – has raised the specter of inflation, or rising prices. Now all eyes are on central banks, especially in the United Stated, to see how they’ll respond. As the NY Times reports:

Federal Reserve policymakers have moved into inflation-fighting mode saying they would cut back more quickly on their pandemic-era stimulus at a moment of rising prices and strong economic growth. This move will cap a challenging year with a policy shift that could usher in higher interest rates in 2022.

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