Examines the state of the current economy of the United States.
This paper determines whether the American Federal Reserve is more concerned with high inflation or the possibility of a recession. It also examines the direction of a recent monetary policy from May 2003.
“Inflation, which is one of the paramount projects of the FED, seems to be remaining low. The Federal Open Market Committee has indicated that the risks to inflation are on the downside. “Currently both the price stability and maximum employment objectives of the Federal Reserve point us in the same direction.” (Federalreserve.com). The continuing support of monetary and fiscal policies, together with the natural resiliency and strength of the U.S. economy, will in all probability lead to expansion without inflation.”