ECON545- Week 6 You Decide Transcript
The current rate is at 8 % and is expected to rise further, the inflation rate is -2.4 overall and prices are falling. After consulting with my financial colleagues on how to proceed with the state of our economy, I agree with Raymond Burke, the President does have some control over the fiscal policy but monetary policy is executed by the Federal Reserve Bank. I agree it would be beneficial to lower interest rates which will boost the economy and help individuals get back on their feet. Patricia Lopez suggests the Federal Policy should leave interest rates alone, but should sell bonds and raise bank reserve requirements but I disagree with her because the Federal Reserve normally do not recommend selling bonds and if they do, usually it is not due to monetary policy. I do agree with Allison Tanney which is Congress and the President should work together to lower taxes which will likely stimulate growth and produce sales in the economy. I also disagree with Kathy Lee on recommendations to raise taxes and reduce government spending. Decreasing taxes and increasing government spending will create new jobs opportunities as the government’s consumption of goods and services from our construction industry increases. This will lead to consumer’s confidence, real GDP and marginal profits in the economy. My final recommendation to the President; by lowering rates will encourage consumers to become involved in spending and re-investing in our nation’s housing market and overall economical