http://www.nytimes.com/2013/04/30/business/economy/fed-unlikely-to-expand-asset-purchases.html?ref=business
Although the unemployment rate is slowly declining, the American public is still unsatisfied. As of now, the unemployment rate is sitting at 7.6%. One of the Fed's main goals is to keep unemployment within its natural rate at 4-5%. The Fed has seen an impact on their recent policies however they have determined that they are "pushing the interest-sensitive sector about as far as we’re going to be able to push it at this time." It will be interesting to see in which direction the unemployment rate goes in the near future.
In a recent article on CNN, it was said that the FED is fairly committed to continuing its current policies, which look to be working (http://money.cnn.com/2013/05/01/news/economy/federal-reserve-stimulus/index.html?iid=SF_E_Lead). However, it has been speculated that they could trouble the financial balance in the future as Congress tries to decrease the country's debt. The FED also is not predicted to reach its goals of lowering unemployment and raising the inflation rate to the point they want until years from now. In the near future we may not see a huge difference because this could be considered a long-term policy.
ReplyDeleteThere is not one thing that can solve the problem. We have so many problems within things that they all built up to one huge disaster. Of coarse "it will be interesting to see in which direction the unemployment rate goes in the near future" because we will never know what the future will hold we just hope. Everything needs to be carefully planned and sorted out with everyone in the plan of fixing this economy. We have been decreasing unemployment and we are close but time to make that last push.
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