It is not surprising news that the United States economic recovery is facing serious challenges. This has truly been a “Summer of Discontent” for the U.S. In order to truly understand the current challenges that the U.S. recovery is facing, let’s back up a few months to the beginning to 2010.
In early 2010, the economic recovery was bustling along quite nicely. In fact, the Federal Reserve was beginning to hold talks behind closed doors concerning when it would be appropriate to begin removing accommodative monetary policies from the economy. At the outset of the 2008 Global Credit Crisis, the Fed had slashed short-term interest rates to historically low levels in an attempt to stave off another Great Depression. These extreme measures were apparently enough to save the economy. Furthermore, the Fed’s quick actions of 2008 were seen to be so successful that Time Magazine named Federal Reserve Chairman Ben Bernanke “Time Person of the Year”!
In early 2010, the economic recovery was bustling along quite nicely. In fact, the Federal Reserve was beginning to hold talks behind closed doors concerning when it would be appropriate to begin removing accommodative monetary policies from the economy. At the outset of the 2008 Global Credit Crisis, the Fed had slashed short-term interest rates to historically low levels in an attempt to stave off another Great Depression. These extreme measures were apparently enough to save the economy. Furthermore, the Fed’s quick actions of 2008 were seen to be so successful that Time Magazine named Federal Reserve Chairman Ben Bernanke “Time Person of the Year”!
