As per the inflation and job target of the Federal Reserve Board the US economy is close to the targets set. The Feds are hoping that the growth rate will pick up in the remaining months of this year. This was stated by Stanley Fischer, who is the vice chairman of the central bank. The comments were made for the Program on World Economy where Fischer commented that employment has gone up in an impressive manner since the low that the nation experienced from 2010. The unemployment rate has been about five percent for the last year. Find Here an article on What Are The Financial Perks Of Being A Young Person?
Take A Look at what the Feds are saying about the US economy state.
The core inflation stands at 1.6%, which was for the price index of personal consumption. This expenditure stood at the above mentioned figure for the last 12 months. The rate is close to 2%, which is a target that is set. The Feds had a dual mandate for reaching an inflation rate of 2% and to get employment at sustainable levels along with that. For this kind of trend Fischer voiced optimism. He stated that the growth rates are coming close to targets that are a positive sign for the US economy. The Gross Domestic Product of US is also expected to grow well this financial year that will account the expenses that have gone into the services and finished goods of the economy. The growth in GDP is expected to pick up in the following quarter. Investment will recover from a weak patch with which the year started off this year. It is hopeful that the dollar appreciation will diminish as well.
Along with growth in inflation and employment the Feds are hopeful that they will be able to raise the interest rates. The Feds are hoping to raise the rates as the employment is increasing and growth has been modest. The funds rate has not changed till the level has been raised from the near zero to 0.5% which was the rate in December. The increase has been over a decade. The Feds feel that the economy has stayed resilient though there have been negative impact over the last two years.
Influence of other factors
There have been several negative factors that have hindered growth in the US in the last two years. For instance, the debt crisis that came about in Greece or the 20% appreciation that led to the dollar going down for trades. The other factors comprised of slowdown in the growth of China’s economy as well as turbulence that was found in the financial markets in the early part of this year. There were other events that have led to the uncertainties like United Kingdom deciding to leave and not be a part of the European Union. Even with these shocks in the world economy Fischer feels that the US economy has held on and employment had continued to rise.