Describe the three important trends in the us economy

1 answer:

7 0

Climate Change is the first trend that is expected to cause more natural disasters. This has been facilitated by global warming caused by increased green house gases. Food prices are expected to rise due to high temperatures that has affected corn and soybean. Floods and storms are now becoming unpredictable.

There is high control of oil, gas and food prices by financial markets. Commodities traders are now setting prices instead of supply and demand thus the value of dollar in under the control of foreign exchange traders.

Increasing rates of interest, where recently the Federal Reserve wants to increase the Fed fund rates to two percent point. Inflation will be at 2% and unemployment at 4% thus this will show a no falling to recession situation which will allow Fed to keep increasing rates.In the long run cost of loans will rise.

Other trends to notice are;the decline in global economic power of the U.S and the fact that the U.S economy is current in the expansion phase of the business cycle.

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