http://www.bbc.com/news/business-29479533
Ever since the financial crisis in 2008, the Fed has kept interest rates close to zero but with the economy continuing to grow the Fed could raise the interest rates for the short run. The stimulus plan implemented by the Fed called "quantitative easing" is expected to end this coming month. They were trying to keep interest rates low by purchasing bonds and thus boosting spending. There is no set date to the raise in the interest rate but the Fed said that it will come "a considerable time" after the stimulus program ends.
It's interesting to see a study published by the BBC on the American economy, and the numbers themselves are pleasing. With a dip like that and an increase in jobs of 248,000, it makes me wonder how many discouraged workers ended up employed as well.
ReplyDeleteAs an aside, the end to "quantitative easing" seems like a good thing. The ability to buy one's own bonds, indirectly or otherwise, is a bit silly.
It's definitely promising to see such an improvement in the economy. However, it's still concerning, knowing that it can be generally unstable and turn on a dime. Still, seeing an improvement raises hopes overall and may even further help in bringing unemployment down.
ReplyDeleteI agree with Brandi that seeing a sign of improvement in the economy is a positive sign. Even though it is improving now, the economy can be very unpredictable a times and take a hit and decrease before we know it.
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