What is the current macroeconomic situation in the United States What Essay

What is the current macroeconomic situation in the United States What fiscal policies and monetary policies would be appropriate at this time - Essay Example This also applies for the U.S. economy, especially in regards to its current macroeconomic situation. In view of the unemployment trends in the U.S., the trends have shown a sharp decline since 2008. The employment rates have steadily risen, with present data from the Labor Department showing that over 140,000 jobs have been created in the economy. This has led to the rate of unemployment dropping to slightly over 7.5%. Furthermore, the Bureau of Labor Statistics places the current inflation rates of the U.S. at below 2.5%. This has been occasioned by the constantly improving economy, with the most significant categories for maintaining the inflation rates low being consumer price index based factors such as shelter and consumer products (Vietor & Weinzieri, 2012). The reduced inflation rates coupled with the low unemployment levels in the U.S. have resulted in an overall increase in the GDP of the country. Furthermore, this is aided further by the diversity of the American economy as shown by the technology, finance and the other sectors that collectively result in the average incr ease in the rate of GDP increasing gradually. Moreover, such industries such as mining, industrial, farming and construction industry are the chief drivers that are involved in the creation of jobs, hence elimination of poverty and reduction in inflation consequently leading to economic growth occasioned by the GDP levels. However, in order to constantly maintain a worthy economic environment and hold all factors at economically feasible levels, varieties of factors are considered by the Federal Reserve authority responsible with formulating fiscal and monetary policies for the economy. As such, the Federal Open Market Committee can consider structuring their policies to ensure further economic prosperity. In consideration of the present macroeconomic situation in the U.S., the committee could consider reducing cuts on public goods, as this could eventually