The economy is still in a slump right now but according to the Federal Reserve Chairmen Ben Bernanke as long as the banking system can be kept stable he expects this recession will end soon and the U.S. economy will start to grow again in the latter part of 2009.
He also believes that after a recovery gets under way, economic activity is likely to be sub par meaning that employers will be cautious about hiring people and the will drive up the unemployment rate.
↓Click "Continue Reading" For More↓
This recession that started in December 2007 has already taken 5.1 million jobs with it!
This assumption of the economy getting better is based on forecasts of a stabilizing housing market and a slowing in manufacturers' inventory liquidation. "A relapse in in financial conditions would be a significant drag on economic activity and could cause the incipient recovery to stall"
But on the bright side he does say that recent data suggests the recession may be loosing its grip on the country. The housing market is indeed showing signs of bottoming out.
0 comments:
Post a Comment