WH: Economy remains exceptionally strong despite market plunge


ㅤô¿ô …This chart shows a simple explanation of the challenge that lies ahead. Since the great recession, during the Obama years, a lot of “stimulus” was injected into the economy.
ㅤDesperate times required desperate measures. But the national debt rose to $20 trillion, nearly double the pre-recession amount.
ㅤAs part of the economic stimulus, the Federal Reserve held interest rates artificially low. Currently, because of economic recovery, the Fed plans to allow interest rates to slowly rise to normal levels.
ㅤBut a new Fed chairman has just been appointed. The financial markets are uncertain whether the new chairman will continue raising interest rates slowly, or instead turn out to be an inflation hawk and raise interest rates quickly.
ㅤThe optimistic Republicans have now inserted their own economic stimulus, that being tax cuts. Though Americans should benefit, it raises the possibility of run-away inflation. Regardless if the Republicans’ plan yields positive or negative results, America’s economic future will be tough on people with weak stomachs.

Full story at The Hill, image from pgpf(.org) – 2/5/18.ㅤTags: financial markets, stock market, wall street, conservative, politics.

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