Wednesday, November 29, 2006

Expanding U.S. Economy

The U.S. economy grew in the third quarter of this year at 2.2%, far high than was expected. This comes as a great relief to the Federal Reserve and the Department of Commerce. Federal Reserve Chairman Ben S. Bernanke attributes the recent slump in the economy to the fall of the housing market. According to the article the Federal Reserve believes that the slump in housing has yet to spill into any other market. In good news though the Federal Reserve is planning to leave the current interest rate as it stands at 5.25 percent. The Reserve in doing so shows a belief that the current interest rates will continue to prevent inflation in the U.S. economy. Also in the spotlight according to the Post article is the average price for an existing house. The price value is up nearly 2 percent over last year, meaning that it could possibly be a good time to sell. While the rate of selling a new home is down

It’s been five years since the attacks on 9-11 and yet the U.S. economy seems to still be lacking. With the arrival of the Democrats on the Hill and the War on Terror is it possible to revive our economy? Will the expenditures that our nation is now making trigger a development of the economy similar to that post World War II?

1 comment:

Lyncee said...

I think one of the main reasons of the poor economy is the war in Iraq. Millions and millions of dollars is being used for weapons, supplies, and reconstruction. The effects are being felt over here, especially because of the 9/11 attacks. I think until matters are settled, and our troops are brought home, the economy will continue to suffer.