Friday, September 6, 2013

Federal Reserves debating to cut back stimulus put into the economy

1. Mui, Ylan Q. (2013, September 6) Economy Added 169K jobs in August as the Recovery Grinds Along. Washington Post 

2. Category of Problem: Economy

3. Level of Problem: National Level

4. The article concerns: Federal Reserves debating to cut back stimulus put into economy.

5. Why is this important to families/individuals or how does it affect families/individuals?
         The report of 169K jobs added was a result of people leaving the work force as stated by the Labor Department. It could of been the working age percentages of people not participating in the working force to due the lack of not finding a job, so were does the Federal Reserve relate? The article targets the decision of Federal Reserves also known as the central bank (the Fed) to reduce bond purchasing. With central bank buying mortgage-backed securities to redirect interest rate from effecting consumers can potential hurt the economy if decision is made to cut back. It can harm families looking to buy homes, or even more so those looking to find a job. Now with Obama decision to take action in Syria, the decision will take time to actually seek a solution to what can increase our economic growth.

6. What are you views on the issue/policy?
I think that the issue has some relation on the recession, the central banks help with buying mortgage-back securities might be harming to the economy. In a couple of years the economic growth could face difficulty due to the foreclosures finally coming to light. I hope that the Feds do not decide to cut input into the economy, but to find better resources as to what the report exactly entail were the 169K job opening are coming from.  

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