For the past quarters, the Federal Reserve has constantly dropped interest rates in an effort to prevent the country from entering recession. As I mentioned earlier, dropping interest rates stimulates the economy by motivating spending from not only

people, but also businesses. Through its fiscal policy, the government also attempts to guide the country away from a recession. President Bush introduced a tax cut last year to stimulate spending but it didn't prove very successful. September 11th dampened the economy the current recession. The Federal Reserve is in charge of maintaining a balance. They are interested in preventing inflation by raising interest rates or stimulate spending by lowering interest rates.

As the article explains, Analysts believe the economy is slowly recovering and may get out of the current recession in the next few months. Jack Guynn, president of the Federal Reserve Bank of Atlanta told Bloomberg News that the Federal Reserve will consider raising interest rates if inflation becomes a concern. Inflation

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Federal Reserve, Curve Analysts, President Bush, Policy Institute, federal reserve, , Jack Guynn, Bank Atlanta, people businesses, dropped rates effort, raising rates, past quarters, rates inflation, september 11th, changes rates, stimulate spending, current recession, rates effort,
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