Learn English FREE with Trancy & CNN 10 | Traveling Billions Of Miles Into Space

G8 Reading Passage

In September, the Federal Reserve decided to lower interest rates. This is the first time in more than four years that they have done this. The Federal Reserve is an organization that helps control the economy of the United States. It does this by changing something called "interest rates." These are the extra costs people have to pay when they borrow money, like when they take out a loan or use a credit card.

When interest rates go down, it becomes cheaper for people to borrow money. This can be good because it makes it easier for families to buy things like homes and cars. Businesses can also borrow money to invest in new projects, which helps create jobs. But lowering interest rates can also cause some problems. If it’s too easy to borrow money, people might spend too much, which could lead to higher prices in the future.

This time, the Federal Reserve decided to lower interest rates because they believe inflation is under control. Inflation is when the prices of things like food, gas, and clothes keep going up. Over the past few years, the Federal Reserve has been raising interest rates to stop inflation, but now they think the prices have stabilized. They will keep watching the economy closely to make sure inflation doesn’t start rising again.

Read the article (British accent)
Members can download all 3 levels of article reading files for free.

---

Vocabulary for G8 Students

1. Interest rates: The cost of borrowing money. Example: "When you take out a loan, you have to pay back the money with interest."
2. Inflation: When prices of things go up over time. Example: "Inflation makes it more expensive to buy groceries each year."

---

Grammar Focus for G8 Students

1. Simple Present Tense: Used for facts or general truths. Example: "The Federal Reserve lowers interest rates."
2. Past Simple Tense: Used for actions that happened at a specific time in the past. Example: "They decided to cut rates last week."

---

Synonym Match for G8 Students

Word	Synonym
Borrow	Loan
Economy	Market

---

Phrase Match for G8 Students

Phrase	Meaning
Federal Reserve	The central bank of the U.S.
Interest rates	The cost of borrowing money

---

Gap Fill for G8 Students

The Federal Reserve ___________(1) interest rates for the first time in four years. They believe that ___________(2) is now under control. Interest rates affect how expensive it is to ___________(3) money.

Answers: 1. lowered, 2. inflation, 3. borrow

---

Listening Exercise for G8 Students

1. What did the Federal Reserve do recently?
   A) Raised taxes
   B) Lowered interest rates
   C) Increased the price of goods
   D) Borrowed money from other countries
   Answer: B

---

Speaking Exercise for G8 Students

1. Discussion: Discuss why borrowing money is important for families and businesses.
2. Presentation: Explain how interest rates affect people who borrow money.

---

G11 Reading Passage

The Federal Reserve, the central banking system of the United States, has made the notable decision to reduce interest rates for the first time in over four years. Interest rates represent the cost of borrowing money, and when they decrease, loans for homes, cars, and business investments become more affordable. The decision by the Federal Reserve to lower rates is intended to promote economic growth by making it easier for consumers and businesses to spend and invest.

This rate cut comes after a long period of increasing interest rates, which were intended to slow down rising inflation. Inflation refers to the general increase in prices over time, which can erode purchasing power. The Federal Reserve raised rates in previous years to control inflation, which had been climbing steadily. Now, the central bank believes that inflation is under control, allowing it to reduce rates to encourage borrowing and investment without risking a sharp rise in prices.

The rate cut is seen as a positive sign for the economy, indicating that Federal Reserve officials have confidence in the stability of prices and economic growth. However, this action must be carefully managed. While low interest rates make borrowing cheaper, they can also lead to over-borrowing and potential financial instability if not balanced properly. The Federal Reserve will continue monitoring inflation and overall economic conditions to adjust monetary policy as needed.

---

Vocabulary for G11 Students

1. Monetary policy: Government or central bank policies that control the supply of money and interest rates. Example: "The Federal Reserve's monetary policy includes adjusting interest rates to stabilize the economy."
2. Inflation: A continuous rise in the price of goods and services over time. Example: "High inflation makes it harder for people to afford everyday items."

---

Grammar Focus for G11 Students

1. Present Perfect Tense: Used to describe actions that began in the past and continue in the present. Example: "The Federal Reserve has reduced interest rates."
2. Passive Voice: Used when the focus is on the action rather than the subject. Example: "Interest rates have been lowered by the Federal Reserve."

---

Synonym Match for G11 Students

Word	Synonym
Reduce	Decrease
Stable	Steady
Notable	Significant

---

Phrase Match for G11 Students

Phrase	Meaning
Federal Reserve	The central bank responsible for U.S. monetary policy
Inflation	The gradual rise in prices over time

---

Gap Fill for G11 Students

The Federal Reserve ___________(1) interest rates in an effort to support economic growth. Lower interest rates can make borrowing ___________(2) for consumers and businesses. However, if inflation ___________(3), the Federal Reserve may need to raise rates again to control it.

Answers: 1. lowered, 2. cheaper, 3. rises

---

Listening Exercise for G11 Students

1. Why did the Federal Reserve decide to lower interest rates?
   A) To control inflation
   B) To promote borrowing and investment
   C) To reduce taxes
   D) To decrease unemployment
   Answer: B

---

Speaking Exercise for G11 Students

1. Debate: Should governments lower interest rates to encourage economic growth, or could this lead to financial instability?
2. Discussion: How does inflation affect people's daily lives, and what can be done to control it?

---

University Reading Passage

The Federal Reserve, which serves as the central bank of the United States, recently made a pivotal decision to lower interest rates, marking the first such reduction in over four years. This move is particularly significant, given the delicate balance the Federal Reserve must maintain in its efforts to stimulate economic growth without triggering inflation. Interest rates are a key tool in the central bank’s monetary policy, influencing borrowing costs for consumers and businesses alike. By reducing these rates, the Federal Reserve hopes to make loans more accessible, encouraging spending and investment across the economy.

Historically, the Federal Reserve increases interest rates when inflation begins to rise uncontrollably, as was the case over the past several years. Inflation represents the steady increase in the price of goods and services, which can erode consumer purchasing power and destabilize the economy if left unchecked. By raising interest rates, borrowing becomes more expensive, which in turn slows consumer spending and reduces inflationary pressures. This practice, known as tightening monetary policy, was employed by the Federal Reserve to combat the inflationary trends of recent years.

However, with inflation now appearing to be under control, the central bank has opted to shift its strategy. By lowering interest rates, the Federal Reserve is signaling confidence in the economy’s stability and is focusing on fostering further growth. Lower rates make it cheaper for businesses to invest in new projects, for homeowners to take out mortgages, and for consumers to access credit. This injection of capital into the economy is expected to boost both consumer demand and business activity, contributing to overall economic growth.

Despite these potential benefits, the decision to lower interest rates is not without risks. A prolonged period of low interest rates could lead to excessive borrowing, which might contribute to financial instability. In addition, if inflation begins to rise again, the Federal Reserve could be forced to reverse course and increase rates once more, which could slow the economy. As such, the Federal Reserve will be closely monitoring the economic landscape, ready to adjust its policies if necessary to maintain the delicate balance between growth and stability.

---

Vocabulary for University Students

1. Monetary policy: The process by which a central bank controls the supply of money, often targeting an interest rate to promote economic growth and stability. Example: "The Federal Reserve's monetary policy is designed to achieve stable prices and full employment."
2. Inflationary pressures: Economic forces that cause prices to rise, often due to increased demand or rising costs of production. Example: "The government is taking steps to reduce inflationary pressures in the economy."
3. Erode: To gradually wear away or diminish. Example: "High inflation erodes consumers' purchasing power."

---

Grammar Focus for University Students

1. Present Perfect Continuous: Used to describe an action that started in the past and continues in the present. Example: "The Federal Reserve has been adjusting interest rates to maintain economic stability."
2. Conditionals (Second and Third): Used to express hypothetical situations. Example: "If the Federal Reserve hadn’t raised interest rates earlier, inflation could have worsened."

---

Synonym Match for University Students

Word	Synonym
Stimulate	Boost
Erode	Diminish
Pivotal	Crucial

---

Phrase Match for University Students

Phrase	Meaning
Inflationary pressures	Economic factors that lead to higher prices
Monetary policy	The system of managing money supply and interest rates to influence the economy

---

Gap Fill for University Students

The Federal Reserve’s recent decision to ___________(1) interest rates comes as inflation appears to be under control. This move is intended to ___________(2) economic growth by making loans more affordable. However, if inflationary ___________(3) return, the central bank may be forced to adjust its strategy once again.

Answers: 1. lower, 2. stimulate, 3. pressures

---

Listening Exercise for University Students

1. What is the primary goal of the Federal Reserve's interest rate cut?
   A) To combat inflation
   B) To stimulate economic growth
   C) To reduce unemployment
   D) To stabilize the stock market
   Answer: B
2. What risk does the Federal Reserve face if interest rates remain low for too long?
   A) Deflation
   B) Excessive borrowing and financial instability
   C) Rising tax rates
   D) A stronger U.S. dollar
   Answer: B

---

Speaking Exercise for University Students

1. Debate: Analyze the potential long-term consequences of the Federal Reserve’s decision to lower interest rates. Are the risks worth the economic benefits?
2. Panel Discussion: Discuss the role of the Federal Reserve in managing inflation and economic growth. What are the challenges of balancing these two objectives in a globalized economy?

---

#LearnEnglishFree #NewsEnglish #CNN #IELTS
#VoiceTube #LiveABC #AmazingTalker #StudioClassroom #ICRT #LunchBox