The Recession Of The United States - 1192 Words

Introduction The 2008-2010 recession is a period when an economic decline was witnessed in major world markets. The U.S. was among the worst hence pressuring the Federal Reserve to make efforts towards evading further damages. The recession was characterized by a rise in both economic demand and asset prices. Other features of the recession included high cases of unemployment, slumping commodity prices, and a drop of international trade. To avoid a further economic decline, the Federal Reserve implemented various strategies that would help stabilize the nation. In cases of economic imbalances are viewed as the main cause of the recession. In response to the recession’s damages, the Federal Bank had the main task of restoring sanity,†¦show more content†¦Ã¢â‚¬ ¢ To highlight the steps that the Federal Bank followed in evading the recession. †¢ To identify the impacts of the Federal Bank’s actions to the country’s loans, interest rates, and business institutions. Problem Statement The 2008-2010 recession is viewed by many Americans as more severe compared to the 1930s Great Depression. This recession threatened the stability of financial institutions, and a severe drop of stock markets. The crisis facilitated the collapse of key businesses such as the housing sector; consumer wealth declined as well as a downturn in economic activities. The consequences of the recession were negative, and they threatened the stability of major economies. All the faulty monetary and fiscal policies had to be developed for purposes of saving the American economy. The outcome of the recession was so severe that identifying appropriate solutions seemed to be an impossible task. However, the presence of the Federal Bank helped solve the great mystery that was damaging the most economies’ economic well-being. The knowledge of the Federal Bank’s action plan is vital since such challenges may be experienced in the future. Literature Review The Federal Bank implemented various strategies with which it fought the negative impacts of the recession. Various steps were followed in reinstating America’s economy to its previously stable state. The steps followed involved; †¢ Identification of the causative