The Power of Alan Greenspan and the Federal Reserve Bank

That job has been the Fed's for nearly ball club decades in the U.S. Others argue that the Fed needs its present level of autonomy and control over the economy, or it would become bogged mound in bi-partisan inaction and ineffectiveness much comparable the U.S. Congress. sooner raising interest rates five times, Greenspan had actually classic a drop in interest rates in order to combat the previous downturn in the spheric economy. The economy became continued to thrive during this period, with inflation and unemployment at incomparable lows. However, Greenspan warns that this new series of interest hikes atomic number 18 necessary in order to provide a method of insuring continued growth. As Greenspan argues "The unemployment rate has fallen so low that there are hardly any workers left to be employed. Demand is so strong that if the Fed doesn't act preemptively to cool off that demand, we exit end up with inflation."

According to the International Monetary memory (IMF), Greenspan's continuous interest rate hikes may be in the best interest of the U.S. economy beca purpose the IMF predicts that while it bequeath be a soft landing, the U.S. economy will experience a slow-down in productivity "The U.S. economy will grow 4.4 per centum this year and then slow to 3 percent in 2001?another scenario

IMF sees U.S. economy backwardness down. Xinhua News Agency. April 12, 2000, 1-2.

In conclusion, the Fed and its chairman have evidential impact on the U.S. economy, both globally and domestically. It is unlikely anyone will seriously oppose the policies of the Fed and Greenspan in the face of the durable running economic expansion in U.S. history mate with the achievements of experiencing both low levels of inflation and unemployment. Greenspan will focus on cutting the national debt by way of more authorities spending coupled with tax cuts to the American people, a class favored by Republic Presidential nominee Bush.

accenting the importance of the 75 year-old Greenspan to the U.S. economy, former Republic Presidential candidate Senator John McCain commented "If Mr. Greenspan should happen to die, God forbid, I would do like we did in the movie Weekend At Bernie's?I'd prop him up, enthrone a pair of dark glasses on him and obligate him going as long as we could." If Greenspan has his way, he intends to use every method as his considerable disposal to attend the same for the U.S. economy. [1100 Words]

Egan, M. If Greenspan rules, does who's president matter? Reuters Business Report. June 15, 2000, 1-2.

Despite a predicted downturn or slowing of the U.S. economy, which refuses to emerge despite the warnings of confused economic experts, it is likely Alan Greenspan, who recently was retained for a one-fourth term that will see him in power done 2004, will continue to be "king" when it comes to U.S. economic policy. Greenspan's popularity paygrade in recent polls was higher than the two presidential candidates and the sitting president. He is often viewed as the architect close responsible for the booming
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