SEATTLE, April 25, 2012 /PRNewswire/ -- With the latest Fed Release we are now seeing an improving economy with the federal open market committee announcing on April 25, 2012 that the overall domestic economy has been improving moderately. With overall Bureau of Labor Statistics stating that the unemployment rate has been slowly declining but the biggest issue plaguing the domestic economy is the housing market.
The latest numbers have seen house hold spending and fixed investments from businesses that are attributing growth for sectors that reach beyond the service industry which is where the USA's economy was starting to shift jobs to at the start of the recession.
Last month business owners cut down on layoffs by over 20% month over month with lower initial claims from those who have been laid off are all excellent signs to an improving domestic economy.
A depressed housing market affects a broad range of categories that the common individual doesn't consider. Everything from mortgage brokers, appliance sales, new alarm systems in homes, cable, furniture sales, and all of the disposable income that owners of homes use from tapping equity through refinances are all incredibly beneficial to the economy.
Oil, housing, and economic experts like Scott Greenlaw agree with the Federal Reserve Bank Chairman Ben Bernanke in their opinions about ways that the higher price of energy is affecting a more rapid recovery. As Greenlaw puts it, if you have to deal with paying an extra $80 a week on gasoline and a 4% increase in your home energy bill that takes away from your disposable income that you would be spending to help reinvigorate the economy.
Change in real gross domestic product (GDP) is forecasted to increase from 2.4 – 2.9 by the end of the fiscal 2012 year. Core PCE inflation is expected to pick up some steam in 2013, growing from 1.7-2.0 percent, while the unemployment rate over the long run is expected to return to the 5.2-6.0% range. The rise in inflation is expected to be attributed to the previous economic conditions and quantitative easing that was conducted throughout the financial crisis.
Source: Brian Raintree - http://scottgreenlawblog.com/
SOURCE Scott Greenlaw