Economic State of the Economyy

Economic State of the Economyy

Economic State
Danielle Bridgewater
FP 120-Personal Finance
November 14, 2012
Sandy Brown

Economic State

“Without a doubt, the most urgent challenge that we face right now is getting our economy to
grow faster and to create more jobs…. we can’t wait for an increasingly dysfunctional Congress to do
its job. Where they won’t act, I will." - President Barack Obama, October 24, 2011
(www.whitehouse.gov) President Obama has made a vast improvement to the United States’
economy.   The current unemployment rate has dropped tremendously since January 2011, back
then it was at 9.8 percent; however, since then it has dropped to 7.9 percent as of October 2012.  
(www.tradingeconomics.com)   President Obama has improved transportation assistance thru
connectivity in California, Minnesota, and Ohio.   Creating various ways for those who do not
own a vehicle to find a job and able them to get to work.   This has assisted truly with the drop in
unemployment.  
The current prime rate is 3.25 percent in the United States.   Prime rate is used as a
foundation for pricing different medium and short term loans.   This affects any loans one might
incur from a credit union, bank, or finance company.   Prime rate allows places that issue loans to
be competitive for business. Before you decide to take out a loan, it is always best to research
and find the best offer with the lowest interest rate. A lower interest rate will provide you with
reasonable monthly payments and you will not be on the down side of unaffordability.   On
December 12, 2012, the FOMC (Federal Open Market Corporation) will meet to decide if a
change is necessary to increase or decrease the federal prime rate.   Often times, providers will
use the United States Prime Interest Rate to determine their base lending rate.   This can work on
the consumers’ behalf.   They will add a profit based on the risk of the loan.   If you have bad
credit, your interest rate will be extremely high....

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