Federal Reserve Sees End to Financial Crisis

Federal Reserve analysts have recently announced that the worst of the US recession is over and that US citizens can expect to see some degree of growth in the economy amidst news that the downturn has finally started to ‘level off’.

With numerous conflicting statements about the state of the US economy, this has caused much confusion amongst US citizens. However the facts remain clear in that growth in unemployment is finally starting to slow, and at the same time, US productivity is increasing, and the rapid level of recovery is surprising many economists.

At the same time, US exports are on the rise after a rise of 2% in June which provides at least some reassuring evidence that this latest news just may be accurate.

It would seem that the Federal Reserve may be accurate with their statements, and many people welcomed their announcements, which highlighted many of the signs that the US may soon be recession free.

Since the US economy entered the recession, the government has worked hard to help stimulate industry and financial sectors, spending over $700bn to boost these industry sectors.

The Troubled Assets Relief Program was also introduced which spent a further $700bn bailing out banks throughout the country, and at the same time the Federal Reserve introduced a variety of programs to buy government debt in order to promote the economy. This quantitative easing has helped the government boost lending and focus on economic recovery.

US Interest rates remain steady at between 0% and 0.25% where they have been since December last year. This is from a peak of 5.25% back in September 2007. For the foreseeable future, interest rates will remain fixed at this low level to aid the economic recovery.

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