Federal Reserve Essay Example | Topics and Well Written Essays - 500 words

Federal Reserve - Essay Example The prevailing outlook over the next couple of months is definitely bleak, and it seems the only way out of it is for the government to launch a stimulus plan to revive the floundering economy. There have been widespread calls for the government to stop these cuts, as these bargain basement policy rates are highly detrimental to the overall economy. Noted professors from Harvard University and big money management houses are imploring the central bank to stop these cuts, as these merely fuel inflation and help boost the prices of basic commodities. However, not all is lost on the nation's fiscal policy as there remains as lone bright spot. The weaker dollar has contributed greatly to stabilizing the economy and holding the fort while all havoc breaks loose. A much weaker dollar coupled with a growing global market has cushioned and reoriented the country's economy by boosting corporate profits. Excluding oil and other basic commodities, the country's fiscal situation is not as bad as it looks on paper. Even with that given, the fact still remains that it is the skyrocketing prices of commodities such as oil which serve as the primary culprit in this economic rut. Usually, whenever the country is in an extended recession the prices will cooperate and go down accordingly.