Washington Attempts to Perk Up Consumers

Published on:
15 February 2008 at 06:15 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00025940-washington-attempts-to-perk-up-consumers/

The Federal Reserve woke from its slumber and realized the economy might be in bad shape. Since September it has reduced its benchmark fed funds rate from 5.25 percent to an even 3.0 percent on January 30.

Meanwhile, Congress and the White House have taken aggressive measures in the form of an economic stimulus package – which will eventually provide Americans with tax-rebate checks ranging from $300 and $600 – with the aim of providing both the economy and consumers a boost.

Such measures make sense, considering that personal consumption accounts for some 70 percent of the economy. Whether these actions lead to a boost in consumer sentiment is up for debate, but any tightening of household budgets will affect the economy, the ARM industry included.

To read my full analysis on this topic, please click here.

Washington Attempts to Perk Up Consumers

Unknown Author

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