FedViews

Financial market concerns about Europe reemerged over the past few weeks. In the spring, markets focused primarily on the unsustainable fiscal trajectory in Greece. Those concerns subsided in late spring when the European Union and the International Monetary Fund announced a special package of loans for Greece conditional on severe fiscal cutbacks, which the Greek […]

The Federal Open Market Committee decided on November 3 to expand the Federal Reserve’s holdings of securities to provide additional support for the economy. In addition to maintaining its existing policy of reinvesting principal payments from its securities holdings, the FOMC authorized purchases of a further $600 billion of longer-term Treasury securities by the end […]

On September 20, the National Bureau of Economic Research’s Business Cycle Dating Committee officially called an end to the recession. It will go into the history books as the longest and deepest downturn since the Great Depression. The recession officially lasted 18 months from December 2007 to June 2009. Over that time, the U.S. economy […]

The economic recovery has lost some momentum in recent months. Not counting the effects of hiring for the 2010 census, employment was rising by several hundred thousand jobs per month earlier in the year. Since May, these gains have averaged only 55,000 jobs per month. Consumer spending continues to grow, but at a fairly modest […]

Some recent data have been below expectations, but the overall economic picture remains one of continued growth at a moderate pace. Some downside risks to the outlook are apparent, including weakness in consumer confidence, the labor market, and the real estate sector, as well as the economic situation in Europe. Real GDP increased at an […]

Despite concerns raised by the crisis in Europe and some recent data that came in below expectations, we continue to project a moderate recovery. Manufacturing continues to do well. Production jumped by 1 percent in April and is up 6 percent over the past 12 months. The latest employment report showed that manufacturers hired 29,000 […]

As the Greek debt crisis intensified and panic began spreading to other parts of the European periphery, the European Union (EU), the International Monetary Fund (IMF), and the European Central Bank (ECB) took aggressive steps to provide support for Greece and to protect against contagion to other countries. These actions included $140 billion of loans […]

It is interesting to examine the recession and recovery of the economy through the prism of the stock market—particularly the broad Standard & Poor’s (S&P) 500-stock index, and the narrower S&P Homebuilders Industry and Dow Jones financial institution indexes. The first stage in the economic downturn was a housing bust, which was evident in steep […]

The economy has shown more signs that it is on the rebound, with the recovery proceeding at a moderate pace. GDP growth for the fourth quarter of 2009 was revised up to 5.9 percent from 5.7 percent. However, 3.9 percentage points, about two-thirds of that number, was due to inventory investment as firms sharply slowed […]

The economy appears to be in a moderate recovery, but questions remain about the durability of growth and whether it can be sustained by private demand as the impetus from the federal fiscal stimulus fades later this year. While the recession may be over, production, income, sales, and employment are at very low levels. With […]