Today, Federal Reserve Chairman, Ben Bernanke, announced that despite a slowdown to the economy, he has hopes for strong growth in the second-half of the year. Likely influencing the American economy, economic growth overseas has slowed due to the debt crisis in Europe and the natural disasters in Japan. Bernanke advised the following to keep the economy on track:
- Insititute a long-term plan for fiscal growth.
- Keep the federal government’s monetary support in place.
- No large short-term budget reductions by politicians. Doing so could cause fiscal contractions which would put the economy at risk.
Bernanke also mentioned the following:
- The spike in inflation is nothing to be concerned about as it won’t last long due to weak wage growth.
- U.S. growth has been slow as seen by the data released showing employers in the U.S. only hired 54 000 new employees last month.
- Labour growth has lost momentum in recent months.
Despite the declining momentum of the economy Bernanke made no mention of further monetary stimulus by the central bank. For the complete details read this article.
If you’re worried the recession will continue to have a negative impact on your business and need help to make adjustments to your business plan, contact the Winflow Financial Group. Our consultants will determine the best plan of action for the remainder of the recession.
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