Current Macro Economic Situation in Usa

Current Macro Economic Situation DEVRY UNIVERSITY 08/24/2012 [pic] I bequeath be writing about the Federal second-stringer how they argon in control of the gratify order, inflation and besides the system they use to keep the nation growth moving. The U.S. respite began in December 2007 and ended in June 2009; however, we are inactive experiencing post-recession effects. The circulating(prenominal) macroeconomic situation in the US is that there are worries about the national debt, come up engage rates and a double dip recession. The rising slope national debt is troubling, because this block off fill a direct impact on the pecuniary markets and interest rates everyplace the long term. The value of one dollar bill is depreciating every other day. Recently, there have been concerns that i f the debt cap is not increased, the US regimen will begin defaulting on its obligations. This is problematic, because it mode that interest rates for any kind of exchequer securities will be higher (as a downgrade in their recognize rating would be inevitable in this situation).

(Watkins, 2011) ascension interest rates are a possibility, because the Federal escaped foodstuff Committee was focused on: purchasing exchequer securities, commercial-grade paper and providing ample amounts of liquidity to the financial system. This was a grant of an effort to prevent the recession that started in 2007 from becoming worse. Now, that the economy has recovered somewhat, there will be th e inevitable unwinding of the stimulus. This! actor that interest rates will be increasing over the long term. (Lehman, 2011) A double dip recession is chop-chop becoming a probability. This is due to the fact that the federal politics and states have been aggressively cutting spending to deal with rising deficits. At the same time, the Fed is removing the massive amounts of liquidity that it handle into the financial system. While...If you want to get a full essay, roll in the hay it on our website: OrderEssay.net

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