Last updated on October 30, 2023
| In 2023, some experts worried about the economy, thinking it might slow down because of a group called the Federal Reserve. They made it cost more to borrow money. But for places like Soergel Orchards in Pennsylvania, things are going well, especially during Halloween! At Soergel Orchards, they have cool things for Halloween, like pumpkins and apples. Even when the weather wasn’t great, people came to the farm to buy Halloween stuff. They also have a shop selling apple cider, and it’s always busy. They’re getting ready for Christmas because they know people will want to buy decorations. Soergel Orchards isn’t the only place doing well. All over the country, people are buying more than experts expected, helping the economy grow quickly. This is good for companies, but it’s puzzling. Experts aren’t sure why the economy is still growing fast despite the Federal Reserve’s efforts. They’re not sure how long this will continue. The Federal Reserve made it harder for people to borrow money by raising interest rates, thinking it would slow the economy a bit. It did slow down some things, like home sales. But it didn’t stop companies from hiring or people from buying. What happens during the holiday shopping season will be important. If people keep buying a lot, it could make the Federal Reserve change its plans. The Federal Reserve wants to slow the economy because prices have gone up a lot. They think if they make it harder to borrow money, people won’t spend as much. So, experts are watching consumer demand and the job market. They might change things in the future, but for now, people are excited about Halloween and that’s good for businesses. Let’s see what happens during the holidays! |
Key Terms:
Federal Reserve: The bank for banks in the US that control the country’s money supply and makes sure that the economy is doing well.
Interest Rates: Interest rates are fees that you pay for borrowing money. When the Federal Reserve raises interest rates, it makes it more expensive for people to borrow money to buy things. Therefore, spending decreases.
Consumer Demand: How willing a customer is to spend money on goods and services.
Job Market: Keeps track of how many people are working, unemployment rate, and the job openings.
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