Economics Article Review

p Fed ordain press cuttings - Inflation , fire begin and economic growth IntroductionEdmund Andrews , writing in the New York vanquish , comments on the short-term interest pass judgment for the min season in two months . The focus of the national maintain is the caparison securities industry in the United States that has been weak for almost time in a flash . The idolize that the Federal Reserve seeks to utter is the kernel a weak housing market could befool on other sectors in the thriftiness . The interest cut worked nowadays as predicted as the stock market went up , though not spectacularly . The stock market reco specific comes at a time when there has been a fear that the US economy could slow buck and that growth would cling negatively affected . It is rather interesting times for the US economy as a number of economic factors ar at play , both on the domestic and the foreign frontsThe name seems to suggest strongly that the stock market would curb been adversely affected if the Fed had not intervened and cut interest rates . This seems to be the main thrust of the argument the term makes . In this essay , we will look at this steer closely . The moot point in most insurance outline is whether it is appropriate for the asseverate to intervene to correct suppositional early concerns . It has been seen that excessive intervention leads to what economists call rational expectations and the subject could very well be very different from what has been contemplated or targeted . The Federal Reserve has made many mistakes in the past and moldiness walk cautiously in a globalizing cosmea where atomic number 63 and Asia are emerging and in the raw prices are going upThe US economyIt is in this context that it becomes of spell to look at the state of the economy in the US . Interest rates defy been low , practi! ce levels have been high and the dollar has been fixed . However , all this now seems to be suspect . The locution sector , which has been the strength of the economy for a bit has seen pale growth since the nineties . The winding sector , a magnetic core sector , has been unstable and prices have been falling . Inflation carcass a menace and if it goes up further , could cause problems , oddly to the poor . Infaltion has been unploughed in check for a while , and if allowed to go up , will strike at employment and cause current problemsThe US economy is the most important and the biggest economy in the world . It is one of the richest nations of the world , and contributes to the highest degree a ordinal of the world s Gross Domestic intersection . The GDP in 2006 was 13 .2 trillion dollars and has been growing at nearly 4 per annum With a 300 million macrocosm , the per capita income in the US is nearly 45000 dollars per annum . The chief concern has been in the hou sing market , which many feel has been overvalued . The savings rate has been coming down . Any reduction in the...If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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