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Federal Reserve - Article Example

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Some of these challenges were inherited from the previous years particularly the famous 2008/2009 US economic crisis and federal reserves. However, by the beginning of 2012,…
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Federal Reserve
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Download file to see previous pages Demand for non-financial services was also reported to have strengthened including transportation and professional services (Federal Reserve Bank, 2013).
By the beginning of March 2012, the US economy was reported to continue flourishing at a modest to moderate pace and economic activities rose at a faster rate in various states. Most states also recorded an economic improvement in various sectors such as manufacturing, agriculture, real estate and construction industry, banking and services as well as tourism and hospitality industry. The hiring rate was also reported to have increased significantly across several districts. Consumer expenditure was reported to be positive in various states examined. Positive findings were also reported by a similar study conducted in mid-April same year and in the beginning of June (Federal Reserve Bank, 2013).
However, despite the positive reports about the performance of the US economy, the agriculture sector was reported to have been affected by the continuous drought conditions in various districts like the Atlanta, Minneapolis, Kansas City, and Dallas. This affected the planting exercise of corn and wheat in areas like Chicago, Minneapolis and Minneapolis. Uncertainty about future demands was another key factor that affected the country’s economy in a tremendous way. The mid April report indicated that some employers preferred to hire employees part-time or temporarily for fear of uncertainties in the future. Such cases were reported in Richmond, Atlanta Districts Boston, Cleveland, Atlanta, Chicago, Kansas City, and Dallas Districts and many employers termed it as a strategy of containing production costs. Therefore, unemployment and drought can be termed as some of the issues that were affecting the US economy.
Inflation was another main issue that threatening the country’s economy. This led to demand for salary and ...Download file to see next pagesRead More
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