Us Economy And Economic Indicators Essay Research — страница 4

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interest rates. High retail sales mean that the opposite of what was mentioned above might be approaching. It seems that the economy now is heading toward faster inflation, more GDP growth, and higher interest rates because the retail sales growth rebounded in May after slowing in April. The buying power of the consumer has been steadily increasing so we can fear inflation on this one too. The retail sales on February 1999, as opposed to January 1999, seemed as if there was a high increase in retail sales in an abrupt manner that can be seen as an inflationary pressure warning. The rough increase of four billion dollars from January 1999 to February 1999 of buying power of the consumer can indicate inflationary pressures. Finally, the CCI, measures the confidence of the consumer.

Looking at the data, I am inclined to say that Americans are a moody people in consumer confidence. From the beginning of 1997 to May 1999, I would have to say the periods of high consumer confidence were more numerous than those that are not. High consumer confidence can also lead to inflation. We therefore believe that the expected rise in interest rates by the Fed is justified in the fact that it is for the sole porpose of preventing inflation and maintaining a healthy economy.