State_Of_The_Economy_2002

State Of The Economy 2002 State of the Economy It is difficult to declare a definite economic state. To declare that the nation is in a recession may be a bit of an overstatement, but it is also difficult to ignore the fact that stock market prices are at some of its lowest points in history. An argument can be made both ways, but based on decisions made by the Federal Reserve Board, current interest rates, employment standings, and GDP; it is probably safe to say that though the economy is weak, it is recovering. Our Federal Reserve’s main duty is to monitor our fiscal and monetary policies. When the Federal Reserve lowers the interest rate in a recession or a weak economy in an effort to try and stimulate economic growth. Thus, on November 6, 2002, Alan Greenspan has, as the Chairman of the Federal Reserve Board, lowered interest rates an additional 0.5%, bringing it to a benchmarking 1.25% short-term interest rate, the lowest its been since 1961 (Berry par 2). As a result of the surprising half point decrease, the Dow Jones Industrial Average finished up 92.74 points at 8771.01. The broader S&P 500 climbed 8.37 to 923.76. state, economy, economic, increase, rate, consumer, interest, quarter, gdp, because, federal, confidence, year, though, stimulate, spending, reserve, recession, par, lower, increased, been, weak, various, third, rates, profits, market, inflation, higher, employment, companies, turn, thus, taken