Our current stinting out look and the tools that bay window be utilized to change its direction                                 Economic growth continues its spongy down moment as the results for the second quarter of 2001 understandably dictate. The Gross Domestic Product (GDP) only rose 0.2 sh ar (BEA News Release) and the unemployment rate as well showed an increase to 4.9 percent (BLS Summary), this shows we argon not poised to avoid a recession yet. cleave ahead monetary and fiscal policy changes argon call for to line up consumer confidence and induce a salubrious rate of spending.         The issues that reckon to be currently plaguing the scrimping are two economic and political. On the economic side we are sleek over confront the effects of the huge growth period of the ulterior one-half of 1999 and early 2000. Businesses were caught in the quick down turn of the economy tha t began in the later half of 2000. A trim down pray for their goods and services left them with excess inventories and an unrealistic intelligence of their demand. As businesses continue to adjust their output there whitethorn be further layoffs, which will continue to increase the unemployment rate. We also proverb the dramatic wane of technology stocks during this same period. This decline tenderloin investment spending and drove consumer confidence in a downward spiral.
        On the political front we are confront similar issues. The public is unsettled with the new administration. They are feeling for quick answers from the White House to help appre! hension the go economy. These answers do not find oneselfm to be advance close enough to gain the needed confidence. As you can see there is increased political haul, as well as, pressure on the provideeral Reserve System (federal officialÂ) to cull quickly to change the course of the current economic situation.         The Fed has three tools... If you want to get a full essay, observe in it on our website:
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