U.s. Economy 's Economy Essay example

1325 Words Nov 29th, 2016 6 Pages
The U.S. economy seems to be back on track in 2016, with improved labor statistic, constructive GDP, and profitable businesses. Since 2008 the US economy has improved enormously by recovering from major losses due to monetary flaws within the economic system. Following the recession, many Americans were left unemployed and with little or no motivation to find work. Since then the improvement of the economy many of them have been drawn back to employment. Leading our economy towards a promising recovery in hopes of a full boom. A chance of inflation is a direct side effect to the newly thriving economy. Inflation is defined as a sustained increase in the general level of prices for goods and services.(What is Inflation). As a way to avoid inflation the Federal Reserve raised interest rates for the the first time in nearly 10 years. The rate hike shows that the Federal Reserve believes the U.S. economy has recovered enough from the 2008 financial crisis to start moving interest rates back to “normal” levels.(Fed Raises Interest Rates) There is a lot of controversy on whether the hike in interest rates is good or bad news for for the economy. The fact of the matter is changes in the interest rates can have both negative and positive effects on the U.S markets. The lower the interest rate, the more willing people are to borrow money to make big purchases, such as houses or cars. When consumers pay less in interest, this gives them more money to spend, which can create a ripple…

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