After our discussion about the Fed in class today, I decided to see what they were up to lately. Turns out that they just reported to congress on July 20th. Their report states that the board feels that the economy is in a very positive position right now.
"Although some of the recent data have been on the soft side, the available information on the outlook for the U.S. economy is, on balance, positive. Households are enjoying a generally improving job market, rising real incomes, and greater wealth, all of which are providing them with the confidence and wherewithal to spend."
This statement, along with all the stats they've collected, helps to explain the decision to increase interest rates. Anyway, I thought the report was interesting and worthwhile to read.
The Fed also may have helped create a few new jobs with their report. I hear John Kerry is looking for someone to help with his economic platforms...