Ielts Academic Writing Task 1 Sample 50

You should spend a maximum of 20 minutes on this task. Write about the following topic: 

The image provides information about the upper limit of the actual and expected federal funds target rate range.

Summarize the information by selecting and reporting the main features, and make comparisons where relevant.

You should write at least 150 words.

The graph depicts the actual and predicted upper limit of the U.S. federal funds target rate range from January 2023 to January 2025, based on market expectations as of August 15, 2024.

The actual federal funds rate, represented by the solid blue line, exhibits a steady increase throughout 2023. It rises from approximately 4.5% in January 2023 to 5.5% by mid-2023, where it subsequently plateaus through August 2024.

Market predictions, indicated by the dotted red line, anticipate a series of rate cuts beginning in late 2024. The forecast suggests a gradual decline in the federal funds rate, projecting it to decrease to approximately 4% by January 2025.

This downward trajectory in the predicted rates contrasts sharply with the upward trend observed in the actual rates throughout 2023. The divergence between actual and predicted rates becomes apparent from August 2024 onward, reflecting market expectations of a shift in monetary policy.

The data implies that financial markets have priced in several rate cuts for late 2024 and early 2025, suggesting an anticipated easing of monetary policy by the Federal Reserve in response to changing economic conditions.