1%, to a seasonally adjusted $18.54, from $18.52, according to the Labor Department. Wages for manufacturing workers fell 0.1%" (Goodman & Healy 2009). Furthermore, "interest rates on government debt surged, hitting their highest levels in six months, as investors bet that inflationary pressure would accompany any recovery" (Goodman & Healy 2009). Long-term prospects seem dicey: major investment firms are now either extinct or severely compromised and even the unemployment data may

Typical monetary policy to control inflation will be difficult for two reasons according to Fleckenstein. First, because the economy recovery is likely to be very fragile, the government will be reluctant to increase interest rates in the short run. Further, given the size of the government deficit, the government will also not want to increase interest rates because it would increase the interest burden. To avert the disastrous scenario predicted

If the Fed is more concerned with the core CPI, then rates are unlikely to be raised this year. An increase in rates would slow the economy down. However, if total CPI increases at a faster rate, this could force the Fed to raise rates slightly. On the whole, however, the data does not support DESA's pessimism about the state of the American economy. The Federal Reserve is currently using

Macroeconomic Situation in the U.S.: Corrective Fiscal and Monetary Policy December 2007 marked the onset of the Great recession, which ended in mid-2009 but left the U.S. economy struggling through the damage wrought by its severity. Federal policy has gone a long way in the prevention of an occurrence of another recession, but growth remains too sluggish and inadequate for the full-health restoration of the economy. Vigorous and sustained fiscal

Macroeconomic Situation A discussion given by the Federal Reserve Bank of Chicago, on June 8, 2010, analyzed America's macroeconomic fiscal situation by opining that the economy is recovering from the recession and that national GDP would increase by, at least, a moderate 3.5% that year. Recovery will be slow given that climbing out takes time and that, given the severity of the recession, a great deal of growth needs to be

While that was not the case for the past year, at this point, with two quarters of accelerating economic growth, tax cuts serve this purpose. Because there is a time lag between the implementation of tax cuts and their impact on the economy, it is recommended that they are combined with short-term stimulus as a two-pronged fiscal expansion. For its part, the Federal Reserve has an expansionary policy in place