Unites States current macroeconomic status Research Paper

Unites States current macroeconomic status - Research Paper Exampleto cipher and in effect risk inflation or reboot interest rates in the near future to increase the economys productive capacity (productivity) hardly at the risk of furthering its recessionary tendencies or forces. The Fed has tried all the monetary tools at its disposal but the economy simply would not budge. The steep unemployment rate fell from a high of 9.5% (14 million jobless) to about 9.0% (12.8 million out of work) in December of last year. It further improved to only 8.3% unoccupied in February this year, with 227,000 non-farm payroll jobs added (Bureau of Labor Statistics, 2012, p. 1). Most of the new jobs were in professional and business services, health care, hospitality, mining, leisure and manufacturing. A fiscal policy the government is move right now is the signing into law the JOBS Act (or Jumpstart our Business Startups) which is a fancy name for incentives intended for small businesses to mor e easily raise capital through crowdsourcing (Futrelle, 2012, p. 1) as it endeavors to clear away red tape and hopefully create more new jobs in the process. The Fed is a molybdenum apprehensive about stoking inflationary pressures but the threat of a double-dip recession is a much more real risk and so the Fed is embarking on third-part installment of its quantitative ease program (QE1 & QE2) and dubbed as Operation Twist to bring long-term interest rates lower, but downside is it might again occupy to a moral hazard and a financial bubble (Curtin, 2011, p. 1).This monetary policy of the Fed to increase the money supply is consonant with all the former(a) pump-priming activities of the government through its fiscal policies of reducing taxes and increased government spending for certain public infrastructure projects. However, those chronic budget deficits of state governments had nullified nigh of the benefits of this program, as they in effect struggled to contain their defici ts from large expenditures and lowered tax revenues. This was shown in August of 2011