United States
Summary
The economic landscape remains bleak. Recently, employment cutbacks have accelerated and the unemployment rate has climbed to 7.6%. The economy contracted at an annual rate of 3.8% in 2008Q4, after a 0.5% drop in Q3. Although that was the worst quarter for economic growth since 1982Q1, the decline will probably worsen significantly in the current quarter. Confidence fell again in January, by less than a point but from an abysmal December reading, and real consumer spending fell 0.5% in December, the fourth decline in five months. The economy is expected to contract at an annual rate of 6.2% in Q1, and to continue to contract at a more moderate rate in Q2 before a gradual upturn takes hold. Both the House and the Senate have passed fiscal stimulus legislation. Treasury Secretary Timothy Geithner has just released plans for the rescue of the banking sector, using the remainder of the TARP funds.
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United States
Highlights and Key Issues
* The economic landscape remains bleak. Recently, employment cutbacks have accelerated and the unemployment rate has climbed to 7.6%. Unemployment claims are soaring, indicating there are further steep payroll cuts ahead. Manufacturers' orders continue to fall, suggesting downwar...See the full content of this document