Fed Chairwoman Janet Yellen had indicated earlier this year that the FOMC should start to raise the rate this year. The FOMC can do so either at the October meeting or at the December meeting.

(a) Do you expect that the FOMC will raise the federal funds rate at the meeting? Explain.

(b) If you were a FOMC voting member, what will be your recommendations for the monetary policy at the meeting and why?

(c) At the September meeting, Jeffrey M. Lacker, dissented by voting for a 25 basis points increase. Do you expect more or less dissenters for the October meetings? Explain.

(d) Do you think that the FOMC communicate clearly the monetary policy action to the public?