Critique

Wes, I think your summary of the article was insightful. Also the article you chose was informative on the methods used by the Federal Reserve to stimulate the economy in times of crisis. It really is incredible just how many jobs the Federal Reserve can create.  " Rosengren estimated that every $500 billion in bond purchases by the Fed creates jobs for about 400,000 workers." That is an incredible number if you think about it. The Fed really does have a lot of pull in how the economy runs. Of course businesses have to create quality products and provide valuable services, but in the end the Fed does have a tremendous pull in how high or low the unemployment rate is, and how high or low the inflation rate is. As stated by Rosengren “Actions taken by the Federal Reserve to speed up the pace of the economic recovery seem to be having the desired impact,”. After seeing this quote it is proven that the Federal Reserve's process to stimulate the economy is working. The current unemployment rate is 7.7% already from 7.9% 2 months ago. Rosengren estimated the unemployment rate to be 7.7% by next February. Obviously the Federal Reserve’s monetary policy is working quicker than expected. At this rate the unemployment rate will be at the national norm before Rosengren's estimated time which was at the end of 2014. "Rosengren, speaking to a business group in Manchester, N.H., said he expects the national unemployment rate, at 7.7 percent in February, to decrease to just above 7.5 percent by the end of the year. It should decline further to slightly above 6.6 percent by the end of next year, he said." Now looking at the inflation rate, Rosenberg who happens to be one of the Federal Reserve’s most influential leaders said that the unemployment rate is slowly decreasing which is a positive for our economy, but the inflation rate is under the Federal Reserve’s target value of 2% which is a concern because it is not showing signs of increasing in the near future. Overall I thought Wes did a nice job summarizing the main points of the article and relating them back to work we have done in class. The topic Wes chose was interesting because it was a topic that is a modern day concern, and it was very insightful to see how the Federal Reserve was counteracting the economic crisis we have on our hands today.