Share
Explore BrainMass

Current macroeconomic situation in the USA

[1] What is the "current macroeconomic situation" (e.g. worrying about inflation and/or recession) in the U.S.?
2] What should the U.S. Congress and the Federal Reserve do about it?
1. Write your individual answers to both questions
2. Your answers must include expansionary fiscal policy tools, FOMC, easy money policy tools.
please provide one article as a reference. Thank you

Solution Preview

[1] What is the "current macroeconomic situation" (e.g. worrying about inflation and/or recession) in the U.S.? [
The current macroeconomic situation is difficult. The economy is struggling, there is high unemployment, high dependence on government and 41 million people are on food stamps. There is uncertainty. The Wall Street news is that company insiders are leaving the US stock market. What is ominous is that the price of gold is increasing. The US Mint has run out of pure gold coins! The Federal Reserve is getting requests that it should stimulate the economy further. The current fiscal tool of providing stimulus to the economy is being planned at the level of $1 trillion!
Consider this The Federal Open Market Committee gave a press release on September 21, 2010 saying that the information received since the Federal Open Market Committee met in August shows that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. The Federal Open Market Committee is the monetary policy making body of the Federal Reserve System. Its latest press release says that bank lending has continued to contract, employers are unwilling to increase payroll costs, and housing starts are down. However, the Federal Open ...

Solution Summary

This solution gives you a detailed discussion on macroeconomic situation

$2.19