Recovery Proposal Essay

836 Words2 Pages

Depending on who you ask, and what side of the aisle they reside on, you could be led to believe the economy is making a dramatic recovery as of lately. However, there is just as strong of an argument that the information is diluted due to false positives in the numbers. The Fed is reviewing whether or not to increase interest rates as soon as October, 2014. A strong influence on this decision is based on the unemployment rate dropping to 6.3% and the creation of 288,000 new jobs in April. Where this number gets misrepresented is best described by John Briggs, head of cross asset strategy at RBS, "It's a good number but it's not an all-out economy full steam ahead number. It's got its issues. Average hourly earnings were flat, weekly hours …show more content…

has seen. However, some believe we are damaging our economy in the long term by keeping interest rates this low as we are seeing what they refer to as “strong signs of recovery”. One individuals in particular is Dallas Federal Reserve Bank President Richard Fisher. He believes keeping rates too low for too long could feed unseen financial market bubbles. Ironically though, he also states that he believes October is much too early to consider raising the interest rates. He believes that once the bond-buying stimulus comes to a close we as a country need to review our position. He states, “Then we have to see how the economy is doing, including these broader measures of unemployment, and where we stand, before we can talk about how we might move the short-term rate.” As a result of the diminishing unemployment rate, whether a true view of our actual situation, there are economic experts stating that if we continue with the growth of 239,000 jobs per month that we will reach a level of full employment in six months. If this trends continues in the unemployment rate and interest rates begin to increase I believe there will be a great outcry from the public especially those who have dropped out of the workforce due to sheer discouragement of the job market that have caused the unemployment rate to artificial declined to some degree. This number is estimates to be 806,000 in

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