High Prices and Rising Rates Put Pressure on Trump
Prices in the United States are still high. This is called inflation. Inflation means prices go up over time.
A gallon of gas now costs six dollars in some places. This is a lot of money for drivers.
The Treasury is also in the news. The Treasury sells special papers called bonds. People get money back with more money later. Right now, the extra money is close to five percent. This is called a yield. A higher yield can mean people worry about the economy.
Many people want the Fed to act. The Fed is the bank that controls US money. It can change interest rates. Interest rates affect loans and prices.
These problems can cause trouble for President Trump. High prices make people unhappy. People often blame leaders for bad economic news.
At the same time, the stock market looks good today. The Dow Jones, a famous stock list, went up 1.15% by 7:30 in the evening. This shows some good news, even with high prices.
Vocabulary15 words
- inflation
- prices going up over time
- Treasury
- the part of government that handles money
- yield
- extra money you get back from a bond
- Fed
- the bank that controls US money
- stock market
- a place where people buy and sell parts of companies
- Dow Jones
- a list that shows how big US companies are doing
- interest rates
- the cost of borrowing money
- bonds
- special papers that pay you money back later
- economy
- how well money and jobs work in a country
- gallon
- a unit for measuring liquid, like gas
- pressure
- a strong push to make someone do something
- loans
- money you borrow and pay back
- president
- the leader of a country
- news
- information about what is happening
- money
- what people use to buy things
Quiz
Answer key
1. Prices going up 2. $6 3. Up
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Prices in the United States are still _____.
A gallon of gas now costs _____ dollars in some places.
The extra money from bonds is close to _____ percent.
This is called a _____.
Many people want the _____ to act.
The Fed can change _____ rates.
These problems can cause trouble for President _____.
The Dow Jones went up _____ % by 7:30 in the evening.
High prices make people _____.
People often _____ leaders for bad economic news.