Debt-Heavy Economy May Be Too Jittery About Rates

Article Abstract:

US economic growth has depended upon consumer debt financing as a way to access money while economic times are slow. Because there are various business and personal indications that the US economy is rebounding, the Federal Reserve Board is once again talking about increasing interest rates to avoid any consequence from inflation. Household debt has gone up from 70% to 83% of the gross domestic product since 1999. Higher interest rates could slow consumption and hurt small businesses, but the Fed believes that higher incomes will help combat the effect of higher interest rates and many small companies will be able to cope with loans that are locked in at fixed rates.

Financial management, Consumer Expenditures, Private Households, Stationery stores, Consumer Exp-Stationery,Writing Suppl, Consumer Expend-Food & Tobacco, Consumer Expend-Health & Recreation, Consumer Expend-Reading & Recreation, Finance, Consumer spending, Company financing, Disposable income

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When It Comes to Presidential Politics, the Fed Walks a Tightrope

Article Abstract:

Both Republicans and Democrats find reasons every presidential election year to accuse the Federal Reserve Board of making interest rate policy to effect the outcome of the election. Democrats maintained that the FRB did not lower interest rates while Al Gore was running president, but lowered them 13 times after Bush took office. The Fed maintains that it tries to avoid any interest rate action before the election occurs. Because of the economic recovery, the Fed is expected to raise interest rates, but its timing is a factor with nine months to pass before the presidential election in November.

Political aspects, Presidents, Bush, George W., Presidential elections

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Whoops! It's 1985 All Over Again

Article Abstract:

With a record setting trade deficit, and an increasing foreign debt, the United States is facing an economic situation similar to the one faced by Ronald Reagan in 1985. The Reagan administration used multinational economic cooperation to deal with the problem.

Administration of General Economic Programs, Economic Programs, Administration of Economic Programs, Intnl Economic Policy, Intnl Economic Relations, Analysis, History, International economic relations, Monetary policy, Balance of trade, Reagan, Ronald, 1985 AD

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