Review of the Economy (Week 8)

A cautiously optimistic Bernanke said he expects "modest" economic growth next year. That should help push down the nation's unemployment rate — now at 10% — "but at a pace slower than we would like," he acknowledged. Under one Fed forecast released last month, the jobless rate would remain stubbornly high next year — ranging from 9.3 to 9.7%. The Fed has warned that it could take five or six years for the job market to return to normal. To nurture the recovery, the Fed has kept rates at record low near zero for a year. The central bank is widely expected to leave rates at those super-low levels at its meeting on Dec. 15-16. By doing so, the Fed hopes to entice people and businesses to boost spending, which would aid the recovery (USATODAY.COM). As the workforce is gradually predicted to strengthen, the economy is beginning to see a bright future. Last weeks overall status of the economy was a steadily increase, giving stock-holders a sigh of relief.