Federal Reserve Case Study

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How successful has the American Government and the Federal Reserve been in running the American economy over the last two years
Following the 2007-09 financial crisis that hit the United States, as well as other western economies, the government instituted specific measures to ensure normalcy is retuned. The government has been engaging in various macro and microeconomic practices to boost economic growth (Board of Governors,
2011). The government has to balance between implementing the congressionally mandated maximum employment and stabilizing prices. In the last two years, the US economy has registered tremendous growth. Unfortunately, unemployment rates are still very high in the country. To this extent, it is observed that the government has been successful to the larger extent in …show more content…
The country’s recovery has been given the fact the purchasing power of many Americans went down. The stock market has not been stable enough to give the Federal Reserve the needed support in sustaining the economic pressure that globalization presents. After the 2007 financial crisis, many people are cautious in the way in which they spend their finances. The little money that people generate through their collapsing businesses is spent wisely because the future is unpredictable. The financial affected even the most stable companies were in verge of collapsing forcing the government to intervene. Many people were worried with the way companies were going down. These do not support the Federal
Reserve and the government because the taxes collected are insufficient to boost economic development. To show that the Federal Reserve in collaboration with the US government is doing a great job in boosting the economy, the conditions at which customers access credits is improving. Through this,
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