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Efficient Economy

            The article I've chosen for this assignment has to do primarily with interest rates, however, more specifically it addresses the issue of allowing the economy to grow and use up its under-employed and unemployed resources. Though a "solid recovery in the US economy" is evident, Federal Reserve officials are saying that any rise in interest rates in the United States are more than likely to be off in some way. Members of the Federal Reserve as well as the President of the Philadelphia Federal Reserve have made various comments, stating that "any policy adjustment need not take place in the near future", and saying that the current low rate environment would extend well beyond the spring. "The standard forecast is still for good that means we are only going to make very slow gains in reducing unemployment", said William Poole, President of the St. Louis Fed. The article points that the comments that are being made by Federal Officials all suggest that the strategy of the central bank is to keep low interest rates for the years to come. In correlation to inflation, some believe that the low rates are going to stick around for a "considerable period", however the President of the Richmond Fed has said that the reference made to a "considerable period" should be erased when the risk of a decline in inflation decreases. The committee will meet next in early December with no intentions of raising interest rates, though they will be putting much attention towards whether or not they think economic development has been strong enough to erase the term "considerable period" from their general statement. In addition, studies have shown that US car sales declined, depressing industrial production as well as retail sales during the month of October - something to be taken into consideration when decisions are being made. .
             The article that I chose pertains to the topics we discussed in class such as inflation, and interest rates, as well as economic efficiency and growth.

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