FEDERAL RESERVE BANK OF CHICAGO Tyler Bayne & Luke Tufte

Current Issues In the US Economy FFR maintained at 2% Residential Housing Market is Down Commodity Prices Increase Low Savings Ratio Value of the Dollar has decreased

Current Issues in the District of Chicago Auto sector production fell 1.7% Machinery sector output dropped 1.0% Resource sector output declined 0.8% Steel sector output slightly declined 0.1% Agriculture is hurting due to flooding

Growth Comparison of the 7 th district states compared to the US economy

Unemployment vs US at 5.5%

Agricultural Growth

Agriculture Seventh District agricultural output as a percentage of the U.S. total Agricultural exports by Seventh District states **The United States exports 54 percent of the world's corn, 36** percent of its soybeans and 23 percent of its wheat.

Midwest Flooding $8,000,000,000 in crop losses, not including livestock, structures or equipment, and rising. Global price increases in grains, cereals, meats and even gas. Estimated 10% decrease in total agricultural output.

Our Thoughts Quarter point increases per quarter in the FFR to approximately 4.5% Resulting in an slight increase in inflation in the short run, but ultimately decreasing Decreasing unemployment Increasing the value of the dollar Finally creating credibility for the FED if done consistently