Current Macroeconomic Situation”

The

“Current macroeconomic situation”

In the

U.S.

The current macroeconomic situation in the US is worrisome. It seems like the past four years there has been a continuous slow growth in our economy. In 2000 the U.S. has deficits that add up a deficit of almost $6.14 trillion based on data published by the Federal Reserve Bank of St Louis. With unemployment extremely high, the housing and commercial real estate markets doing poorly we are in a slump economically. Our deficit is more than 100% of GDP and that is not easy to get out of. It looks like the slow growth rate could possibly threaten our economy to slip back into recession. With historically very high unemployment and under employment.The unemployment rate is at 8.2% as of July 2012, whereas the average in 1948 was at 5.6%. While the inflationary rate is approximately 2.3%, seemingly that is lower than the past average rate of 3.38%.Now, when it comes to the inflation rate in the United States was recorded at 1.4 percent in July of 2012. Historically, from 1914 until 2012, the United States Inflation Rate averaged 3.4 percent reaching an all time high of 23.7 percent in June of 1920 and a record low of -15.8 percent in June of 1921 ("United states gdp," 2012). According, to the Trading Economics, The Gross Domestic Product (GDP) in the United States has expanded 1.5 percent in the second quarter of 2012 over the previous quarter. Historically, from 1947 until 2012, the United States GDP Growth Rate averaged 3.3 percent reaching an all time high of 17.2 percent in March of 1950 and a record low of -10.4 percent in March of 1958 ("United states gdp," 2012).

The current downward trend for interest rates should help to expand the economy; however, loans are hard to come by and lowering the interest rate has little impact if businesses that need capital can’t obtain loans. The FOMC (Federal Open Market Committee), the 12 member committee that makes decision for the US Federal Reserve, is trying to...