The economy is in worse shape than it has ever been in history, U.S. economic growth slowed to an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending. The weaker growth adds to worries that the economy could be stalling three years after the recession ended.
Growth at or below 2 percent isn’t enough to lower the unemployment rate, which was 8.2 percent last month and Economists don’t expect growth to pick up much in the second half of the year.
Few think the Fed, the White House or Congress can or will not do anything soon that might rejuvenate the economy quickly. Many lawmakers, for example, refuse to increase federal spending in light of historically large budget deficits.
Paul Dales, senior U.S. economist at Capital Economics, said that the sluggish second-quarter growth rate is probably not weak enough to trigger more action by the Federal Reserve when it meets next week.
Many economists, however, believe the Fed will launch another round of bond buying at its September policy meeting. The aim is to drive long-term interest rates lower and encourage more borrowing and spending.
What does Obama say, ‘We tried our plan — and it worked.’
We don’t need another 4 years of obama’s policies that he claims is working.