The
recession is coming closer to an end. Economic activity is continuing to pick
up and build the momentum needed for markets to improve and for the economy to
reach a sustainable recovery. Here are some specifics on recent economic
activity and some things you can expect in January 2010:
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Short-term interest rates will stay near zero percent. Fed policymakers
reported that tight credit continues to hold down the economy and they plan to
keep their benchmark interest rate near zero for at least several more months
as long as economic slack remains high and inflation is low.
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While credit remains tight for many borrowers, there have been signs of
stronger demand for homes and consumer goods and services, which indicate a
rise in consumer spending and renewed economic growth.
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Mortgage rates in the United States have dropped to their lowest levels since
the 1940s due to steady support by the federal government. As the economy picks
up, credit conditions will improve and more homeowners will be able to take
action.
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There has been an upturn in new home construction, with building permits
climbing to their highest level in a year.
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The economy lost only 11,000 jobs in November, far fewer than the market
consensus forecasted, and the unemployment rate unexpectedly fell to 10%.
Continued efforts and government support will help markets continue to improve
and the economy move closer to a sustainable recovery in the new year.
