Current Macro Economic Situation in Usa

Current Macro Economic Situation DEVRY UNIVERSITY 08/24/2012 [pic] I bequeath be writing about the Federal stockpile how they argon in control of the gratify pass judgment, inflation and as well as the system they use to keep the nation growth moving. The U.S. quoin began in December 2007 and ended in June 2009; however, we argon suave 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 acclivity national debt is troubling, because this stymy fill a direct impact on the financial markets and interest rates oer the long term. The value of clam is depreciating every other day. Recently, there have been concerns that if the debt jacket crown 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) upgrade interest rates are a possibility, because the Federal up to(p) foodstuff Committee was focused on: purchasing exchequer securities, commercial-grade paper and providing ample amounts of liquidity to the financial system. This was a egress 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 un winding of the stimulus. This convey 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 government 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 portion out into the financial system. While...If you want to get a full essay, nates it on our website: OrderEssay.net

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