A Report on the US Economy

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The US economy is in a state of slow recovery from a recession. According to the Bureau of Economic Analysis, the current rate of GDP growth is 3%. According to the Bureau of Labor Statistics, the current unemployment rate is 8.2%. The CPI is sitting at 0.4% and core CPI at 0.3%. According to the Congressional Budget Office, the "real GDP is expected to increase by 3.1% this year and 2.8% next year." This indicates slow, steady growth, and that the current GDP growth is in line with the expectations for this time period. The Federal Reserve has set an inflation target of 2%. This official target replaces an informal target that was understood to be in the 1.7-2.0% range (Spicer, 2012). The current rate of inflation is well below the target rate, despite increasing fuel prices. The Federal Reserve does not have a target unemployment rate, but it does have a dual mandate to manage both inflation and unemployment. This represents the lowest rate since January 2009, and the unemployment rate is on a declining trend. Given these figures, however, the unemployment rate is the farthest away from being at an adequate level, given that full employment is somewhere around the 3% level. Thus, the current situation is characterized by relatively slow growth, but growth nevertheless. The unemployment rate is high, but coming down slowly. The inflation rate is low, and at its worst in the past year has only been slightly above the Fed's target zone. This has some implications
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