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Current Macroeconomic Situation

In: Business and Management

Submitted By Rozez2003
Words 424
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Current Macroeconomic Situation student email
Week 6 Assignment

Our current macroeconomic situation in the United State holds an unemployment rate of 6.7% as of March 2014. While this number does not seem like much of a jump, it has risen from 5.8% in ten years. During this same ten year period, in October 2009, the unemployment rate reached a very scary 10.0%. ("Labor force statistics," ) During the same ten year period our inflation rate has had some dramatic changes as well. Starting 3.3% in 2004, then hit an overall ten year high of 4.1% in 2007. The current inflation rate sits at 1.1%. This does not seem like a high number but some would consider it to be since the inflation rate was 0.1% in 2008. ("Current us inflation," 2014) As far as a recession, there are still people that think we are in a recession. The United States did surface from a recession in 2009. The economy has also been growing for the last five years and gaining in domestic product growth. However, economist Emanuel Saez found that 95% of income gains came from the top 1% of earners. He also found that even their earnings were growing slower. (Barro, 2014) While these numbers may lead some to think we are still in a recession, it is actually showing that wage gain has not kept up with economic growth.
During the second half of 2013 and into 2014 the economic market did improve and moved into economic recovery. While recovering, payroll has slowly risen and unemployment is slowly decreasing. The Federal Open Market Committee has determined economic activity has decreased due to winter weather. They have also determined the unemployment rate is elevated but household spending is advancing. The fiscal policy is restraining economic growth. However, the restraint is diminishing. They have also determined that inflation rates are expected to remain stable. ("Board of governors," 2014)

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