The United States' current macroeconomic situation is dire. The current unemployment rate as of July 2012, according the the Bureau of Labor Statistics, is 8.3 %. The percentage is down 1% in comparison to the rate of 9.5 % in July of 2010. The current rate is still a far reach from the 4.7% in July of 2007, five years ago. The inflation rate for the the United States as of July 2012 is 1.4% according to www.tradingeconomics.com. It is noted that the inflation rate has decreased and shows a great improvement from the recorded inflation rate of 3.5% in July 2011. Since the United States is still currently in recession, despite the positive changes of the unemployment and inflation rates, expansionary fiscal policy tools would be most beneficial and appropriate at this time. An increase in government spending and tax reductions should help increase the aggregate demand and over all increase the country's GDP. In additional to fiscal policy, there are monetary policies that can be implemented that can help remedy the country's current macroeconomic situation. According the the Federal reserve's website, www.federalreserve.gov, monetary policy refers to the actions undertaken by a central bank, to influence the availability and cost of money and credit to help promote national economic goals. The FOMC, which consists of 12 committee members, holds 8 meetings a year to assess and potentially rectify the current economic conditions. They use different monetary policies to address the country's economic and financial conditions. According to the FOMC's most recent monetary policy release dated August 1, 2012, the “economic activity decelerated somewhat over the first half of this year.” It brings note to the slow growth in employment and the elevate unemployment rate. They addressed the housing market still remains depressed. The committee voted on