Taking a look around

Posted by | May 22, 2008 | Current Affairs | No Comments

Looks like the Fed’s forecast might put many a spirits down and analysts might be quite apprehensive about its global impact. In its recent announcement the Fed. has put down its expectation of the U.S economy growth. According to ‘Reuters’ Fed. has put the growth rate from 0.3% to 1.2% from the range of 1.3% to 2% (forecasted about three months ago). It might also be expected that Fed. might not lower the ‘rate’ any further due to increasing risk of inflation. In spite of the vigilant measures extended it looks like the inflation might be quite high for the U.S, another alarming factor that the economy could be facing might be increasing unemployment rate. With lower growth rate, increasing inflation and unemployment rate looks like it would be while before all the three factor settles down.

Meanwhile what would be the global impact in such a scenario is yet to be seen. On one hand is the rising price of oil which many expect to touch the $200 mark in such a scenario what could be a corrective policy measures that varios global economy would adopt is to be seen.

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