Macroeconomic Outlook of U.S. Economy Essay - 1835 Words

Investment Analysis Macroeconomic outlook of U.S. economy For every four to six years U.S economy faces an economic slowdown. Thus the current market is now in forth year. The root of U.S. crisis and its economy can be traced backed to 2007, when U.S housing bubble burst which yields a financial meltdown in 2008. In average, the American trying to make ends meet in 2014, a market and a recession will probably look and feel the same. In early 2008, when the financial crisis began, then the U.S. national debt stood at $9.2 trillion. Figures figure out by the White House, the national debt will reach $20.0 trillion by the end of decade about 140% of our current GDP. Successful debt reduction requires fiscal constraint and policies that†¦show more content†¦The positive gains will come strongly as business and customer’s confidence reinforce, when the overseas sales increases and the Europe begins to emerge from the prolong snooze. And the manufacturing purchasing index activity reports will show the strong expanding output. Furthermore, there is a decent chance of an upside surprise to 2014 growth. Rational investor’s investments, spending and confidence are still below than the expected level what would be considered normal levels by the standards of past economic expansions. As the job growth becomes strong and consumers feel more protected then a righteous way of spending is getting better, more consumer income begetting more spending could be initiated. If this occurs rapidly then the quarterly growth is likely to exceed an annually at the rate of 3%. But if this does not happens in 2014 than it is nevertheless very likely to happen before the end of 2015. (Payne, 2014) Unemployment In March 2014, the encouraging thing was that the unemployment rate held at 6.7%. Even though a lot of individuals entered the labor force who power up the participation rate to 63.2% which explicitly means that the number of unemployed people did not raise so much. But the rate is expected to gradually drop to 6.3% by the end of the year. In March, although the initial reports on weather effects in January and February nevertheless played a role in dampening job growth in thoseShow MoreRelatedEssay on Current Macroeconomic Situation in the United States867 Words   |  4 Pages The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. 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