Balancing Act? No Worries.

The US is the lynchpin of the world economy. On May 7th 2002 the US Labor Department reported that US worker productivity improved at a rate of 8.6%/year which further dampened the nearly nonexistent inflation concerns. There certainly is liquidity in the US, just look at the rising real estate markets, renewed interest in the bond market, the interest in dividend yields and the spike in share values after the somewhat positive Cisco Systems Q1 2002 earnings report. On the other hand, the lack of inflation is really dis-inflation bordering on deflation with margins so thin that investment is not an option for many companies. This has lead to the highest unemployment rate in the country, over 6%, since 1993. Therefore the Federal Reserve has left US interest Rates stable, the outlook neutral and the “loose dollar” rules. It is a balancing act, quite simply, and today its still unknown whether the US is in recovery or not.

This is only an excerpt of Balancing Act? No Worries.

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.

Existing Users Login
Username
Password

Related Archive Files

• No Related Post