Money to the global market and governments around the world consider it to be an object that has value. There is a common understanding that money is used to exchange or trade services and goods throughout the world. In the early 1900’s the Central banking system and Federal Reserve were founded by the United States Congress resulting from the aftermath of an economic crisis that shook the United States financial stability (Thai Press Reports, 2009). The Federal Reserve was mandated with providing regulatory and monetary obligations. The Federal Reserve has an extensive knowledge and experience managing a fast majority of financial markets for both domestic and foreign circumstances. The Federal Reserve plays a critical role during an economic crisis according to the Treasury Department to manage and prevent financial emergencies. The Federal Open Market Committee is the authority head over of the Federal Reserve Board. The Federal Reserve can manage interest rates on loans to banks and higher interest discourages banks from lending as freely; lower interest rates have the opposite effect. Reserve requirements are mandated by the Federal Reserve and what banks are required to keep in their loan portfolio.
Unemployment numbers rose although there was an increase in output during the second half of 2009. Unemployment hit a peak that we have not seen since the late 1980’s although reported job losses have slowed employers do not seem to be hiring. The market for jobs fell but at a slower rate than the first quarter but projections expect it to take time before the growth of the economy and labor market to gradually improve. The economic inflation and activity had little to no change and is expected to be held back by business and consumers weariness. Expectations of the economy to be able to sustain growth in output and
