Current Macroeconomic Situation in the US Essay Example | Topics and Well Written Essays - 500 words

Current Macroeconomic Situation in the US - Essay ExampleThe government has pumped money into the economy to boost expenditure which in turn boosts the aggregate demand by increases it. This move aimed at providing citizens with more money to spend. It has also increased its spending to hike confidence more or less exploitation. The rescue of insurers and banks also helped to build confidence to public and businesses in the economy (Moore, 2014). On monetary front, FOMC has undertaken buying government securities in an attempt to reduce cheer rates and encourage investing. This increases the level of yield and betters confidence level. The government has tried its best to resurrect the U.S economy from the effects of 2008 crisis (Moore, 2014).According to Bureau of Economic Analysis, the gross domestic product increased at an annual rate of 2.6% by fourth quarter of 2013 and in third quarter, it had increased by 4.1% (Pew Research, 2013). Real disposable personal income grew by 0 .3 percent in February 2014 with a similar percentage increase recorded in January. As of September 2013, U.S GDP was $15.7trillion-2.2 growth in 2012 Unemployment was at 7.2%, ostentation at 2.1%, and public debt at 106% of GDP (Pew Research, 2014). The GDP has increased overtime as the employment and inflation rates have declined. Unemployment has come down easily but steadily but creation of more than 300,000 jobs per month is what is required to bring it down with the desired speed (Pew Research, 2014).To ensure a steady growth in U.S economy, political leaders need to ensure that there is no interruption in nominal functioning of government (Moore, 2014). Changes are needed in budgetary procedures to curb such disruptions as government shutdown by abolition of nominal debt ceiling, to allow automatic authorization of resolutions passed by congress and acceptance implied by budgets. To give economic confidence a chance of entering positive territory, positive economic trends must continue. Government should increase money circulation in the