Current Macro Economic Situation in Usa

Current Macro Economic Situation DEVRY UNIVERSITY 08/24/2012 [pic] I bequeath be writing about the Federal qualification how they argon in control of the gratify rank, inflation and to a fault the system they use to keep the nation growth moving. The U.S. niche began in December 2007 and ended in June 2009; however, we be keep mum 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 rise national debt is troubling, because this lead fill a direct impact on the fiscal markets and interest rates everyplace the long term. The value of vaulting horse is depreciating every other day. Recently, there have been concerns that if the debt capital 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) salary increase interest rates are a possibility, because the Federal expand foodstuff Committee was focused on: purchasing exchequer securities, commercial-grade paper and providing ample amounts of liquidity to the financial system. This was a lead of an effort to prevent the recession that started in 2007 from becoming worse. Now, that the economy has recovered somewhat, there will be the inevitable u nwinding of the stimulus. This actor that ! interest rates will be increasing over the long term. (Lehman, 2011) A double dip recession is quickly becoming a probability. This is due to the fact that the federal political sympathies 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 deal out into the financial system. While...If you want to get a full essay, back end it on our website: OrderEssay.net

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