Current Macroeconomic Situation in the U.S

Introduction3

What is the Current Macroeconomic situation in the U.S?3

What Has U.S. Done?4

Few Suggestions For Action5

Conclusion6

References7

Current Macroeconomic Situation in the U.S

Introduction

This paper deals with the current economic situation, especially at the macro level, faced by the United States of America, the world's largest economy and the fiscal and monetary policies undertaken by it to deal with the situation. It also suggests few other policies which may be helpful, if undertaken, for combating the situational crisis faced by the U.S.

What is the Current Macroeconomic situation in the U.S?

The U.S economy has not recovered completely from the recession due to the financial crisis of the year 2008. This crisis had started with the housing bubble problem of 2008 which contributed to the near collapse of financial biggies like Lehman Brothers. At that moment, unemployment had been at its record high and was the largest troubling area for policy makers since no employment opportunities meant lower consumer confidence and further business opinion also suffered. To come out of that situation, the US Government have and is still taking measures to improve the economy, but with little effect.

However, in spite of the incompetence of the measures, U.S economy had enjoyed more than three years of continuous economic growth and falling unemployment since the recession ended. Although there had been an increase in the employment opportunities in food services and drinking places, business & professional services, retail trade, and health care, it is still very much below of where it should be at the point. Real Gross Domestic Product (GDP) increased at an annual rate of 2.5 % in the first quarter of 2013 (as compared to the fourth quarter of 2012) as per the estimate released by the “Bureau of Economic Analysis”. However, there has been not been considerable control over the inflation rates. Since the recovery began, Economic growth has averaged less than 2.25% and is likely to have been reduced to less than 1% in the most recent quarter. Thus, the policies undertaken by U.S Government would get the economy back to its long-term average growth rate; it is far short of the robust recovery that usually ensues after a recession.

What Has U.S. Done?

The answer of the U.S. government to the 2008 fiscal crisis and following Great Recession incorporated some of the most aggressive monetary & fiscal policies in history. The reaction was comprehensive and bipartisan, linking ...