Reference no: EM132897430

Question - Is Soprano's suggestion on the future Federal Funds Rate justifiable? Why? Institutes of Financial Advisors (IFA) is a New Jersey-based financial investment consulting company that primarily provides investment recommendations to individual investors. The company is specialized in forecasting the long-term industrial and macroeconomic trends in the U.S. The company also devotes to evaluating how the trends affect the performance of equity investments.

Tony Soprano recently joined the research department of IFA as a financial analyst. His first assignment is to research and to reach conclusions concerning several important macroeconomic trends in the U.S. He notices the number of initial claims for unemployment insurance has been steadily increasing over the past 24 months and a below-50 Purchasing Managers Index from the most recent ISM Report on Business. Soprano predicts such a trend in employment perspective should continue for the next two years. Accordingly, in his report, Soprano should suggest that the U.S. government is very likely to raise the Federal Funds Rate in the coming months.