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Federal Reserve Outlook Paper

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Federal Reserve Outlook for Economy The 2017 economy seems to be trending in the right direction according to an article by CNN (Long, 2017). The economy of America has been fighting its way to recovery since 2008. The Great Recession led to a financial crisis that the country has not seen since the Great Depression that began in 1929. However, the economy seems to finally be back on track. During the Great Recession, the unemployment rate was 10%, however today it is only 4.7%. Also, the economy is nearing the Federal Reserve’s goal on inflation of 2% (Long, 2017). This article goes on to say how the Federal Reserve has only had 3 interest rate hikes since the financial crisis. The central bank however, is expected to raise the rates two …show more content…

However, based on the data presented the country is finally receiving the recovery it has needed all so badly. The Federal Reserve seems to have been doing a good job in maintaining the growth of the economy. As stated in the textbook, Principles of Economics “The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability” (Rittenberg and Tregarthen, 2014, Ch. 26.1). As you can see the Fed is partially responsible for helping maintain the economy. CNN had a great take on the subject at hand. It is easy to appreciate the article since they kept their bias out. They discussed how the economy has struggled to expand much past 2% a year in this recovery. However, they did also state how President Trump believes he can deliver 4% growth and said how 3% growth is obtainable. They showed how even though the growth has not been as high as expected, they still gave credit to Trump and how they think his plan is partially obtainable. Overall, CNN did a great job in laying out the …show more content…

The economy is clearly trending in the right direction. The Federal Reserve is making the right decisions, President Trump seems to be doing the same. The article was quite the eye opener to say the least though. To be honest I did not think that the economy was prospering as much as the article makes it seem. The unemployment is low, inflation is slowly reaching the target of 2%. It almost raises the question of, if the country is doing as well as it seems how much more can it grow? President Trump believes he can attain 4% growth, however when the United States is doing so well it is hard to believe it can increase that substantially. As far as the Federal Reserve goes it clearly is doing the right measures. If the country is nearing the goal of 2% inflation then it is hard to complain. Also, I believe these incoming interest rate hikes will help the country out more than some would think. It is needed when an economy is prospering. Overall, I believe the county is doing well as CNN and the head of the Federal Reserve have stated. However, the goal of 4% growth in an already prospering economy does not seem

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