Some economists predict that the U.S. economy will slide into recession next year. The outlook is the gloomiest in years and the World economy will take a hard hit if the world's largest economy goes into a recession.
The U.S. Federal Reserve has cut interest rates three times since September, lowering its benchmark rate to 4.25 percent. Economists expect the Fed to keep cutting, dropping the rate to as low as 3 percent by midyear, which would be the lowest since May 2005. That should help the economy because lower interest rates encourage consumer and business spending by lowering borrowing costs.
The U.S. economy is expected to be most vulnerable in the first half 2008, when growth is so slow that even a mild shock, like another surge in oil prices, could push it into recession.
Click below to listen to the United States presidential candidate Dr.Ron Paul discuss economic and currency issues.
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3 comments:
Its interesting to see a young Maldivian man ( I presume you are one)interested in this type of things. The whole world is hell worried about whats going to happen next year...sluggish growth, stagflation, record high commodity prices, oil prices etc. We are either blithely ignorant of what's happening in the world or have too important things such as constitition and party politics to talk about...our media is no different either.
I'm thinking Mr. Hilmy is a senior non-resident Maldivian.
Hi askme and anonymous
Thank you for the comment. At the moment I am a senior non-resident Maldivian.
Best wishes for the new year. hilmy
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