Working with Federal Reserve's Publications Research Paper

Working with federal official gives Publications - Research Paper Example5). This paper is aimed at describing Federal Reserves views regarding various economic perspectives in recent times. These economic perspectives include accepted level of inflation, Federal Reserves assessment of the current economic activity and financial markets, and the monetary policy tools the Federal Reserve uses to stabilize the economy and maintain price perceptual constancy in the country. Federal Reserves assessment of current economic activities and financial markets The Federal Reserve holds a very positive view regarding the current economic activities and the current restrict of the financial market of the country. The chairman of the Fed, Dr. Ben S. Bernanke, has argued that after the global financial crisis of 2007-08, the American economy is experiencing greater spate of economic activities. These activities include both greater labor and consumption of goods and services across the count ry and also greater volume of monetary and financial transactions through financial intermediaries of the country. Disturbances in the financial markets of the country, including in the main the markets for houses, loans, and mortgages, have created greater problems in the country by reducing the volume of economic activities in the country. The crisis has created problems for private as well as public celestial sphere businesses, mainly for financial companies to add-on their level of profits or even to stay in the business. But during the period of end of 2008 and the beginning of 2009, the US presidential term and the Fed took various fiscal as well as monetary policies which have helped economic agents in the country to increase the volume of economic activities and to increase countrys rate of produce of aggregate and per capita income along with the level of unemployment. The most important fiscal policy that has been follow uped by the US organization is reducing the le vel of government expenditure. This has helped the country to reduce the level of budget deficit and fiscal deficit. According to the Fed the country is experiencing greater economic activities in terms of greater production of goods and services and greater stability in the financial market of the country compared to the period of global financial crisis. This greater stability has helped the country raise the level of investment in production of goods and services and also in research and developmental improvements of existing technologies of the country. The rate of aggregate income is expect to catch up with pre-recession periods rates within 2013 and the per capita income growth rate is expected to increase at the rate of Chinas per capita income growth rate (Bernanke, 2009, p. 1). Federal Reserves assessment of current inflation The level of inflation has been very high since 2007. Due to this consumers are not overt of purchasing costliest goods and services and hence busine ss organizations which are engaged in production of these goods and services are leaving the industry. Again this is reducing the level of income in the country and hence the level of demand for necessary goods and service. The Fed is expecting inflation to be subdued in the next few years because of weaker level of veridical economic activities prevailing in the country. It is expecting to have a lower level of inflation rate in 2013 which might lead to an increase in the volume of economic activities in the country. The Fed is expecting that the current rate of change in overall prices is expected to fall to 1 to 2 percent from its current level of 3 percent within five years. According to the Fed the declining trend in prices of energy resources and other commodities will gradually help the economy to implement stricter monetary and fiscal policies being aimed at