Is the US economy on the right track?
Posted by Stephen Cline on September 6th, 2010There are quite a few encouraging signals that are emerging from the US economy which seems that it could be party time sooner rather than later. Take for instance the case of Janet Yellen, who is the president of the Fed Res Bank of SF. She has said that the US economy is quite on the right track, which means that the borrowing costs would have to be lifted at some point or the other. The news is good and it has been awaited for long, but it is welcome when it finally came along. But we must not lose sight of the fact that the recovery is all too fragile and the party could be ruined by any single event that threatens it. This is why the US benchmark interest rates have been kept low for an extended period of time.
Data from the US economy in terms of factory production as well as retail sales seemed to echo the optimism that is being voiced in some quarters. The job data is also better now as there seems to be a slow and steady rebound of the number of jobs being created around the US economy, all of which makes it seem as if the US economy is emerging from the woods.
Tags: right track, US economy