Outlook and policy statement Term Paper Example | Topics and Well Written Essays - 500 words

Outlook and policy statement - Term Paper Example However, with the recent hike in consumer spending with a 2 ? percent increase annually witnessed during the third quarter of 2010 has provided hope that economic recovery will eventually occur. The increasing investments in equipment and software industry have given a boost to the recovery. On the housing front the hikes in home prices and construction costs have not been able to contribute to this growth and at the same time not drastically affected the recovery process. While the labor market has been unable to accommodate the huge losses of jobs during 2008-09, the number of job openings and the hiring rate is on a constant rise in the past recent months. However, considerable time will be required in order for the unemployment rate to return to normalcy and this time period could have a lasting impact both on the financial status of those unemployed and also on their skills and future employment and earning prospects. The testimony also notes the downward trend witnessed in the inflation rate compared to the previous years. This trend has been mainly attributed to the struggling job market and the associated decrease in utilization of resources. However, the inflation expectations in the long-run are expected to remain stable.