analyze the unemployment rate and inflation from 2000 - 2010 in the US. discuss the interest...

analyze the unemployment rate and inflation from 2000 - 2010 in the US.

discuss the interest rate fluctuations from 2000 - 2010 in the US

Expert Solution

Analyze the unemployment rate and inflation from 2000 - 2010 in the US ?

Ans....

Year	Unemployment Rate (December)	Inflation (Dec. Year-over-Year)	Analyze Or Reason
2000	3.9%	3.4%	NASDAQ HIT RECORD HIGH.
2001	5.7%	1.6%	BUSH TAX CUTS. 9/11 ATTACKS
2002	6.0%	2.4%	WAR ON TERROR
2003	5.7%	1.9%	JGTRRA
2004	5.4%	3.3%	EXPANSION.
2005	4.9%	3.4%	BANKRUPTCY ABUSE PREVENTION ACT. KATRINA
2006	4.4%	2.5%	EXPANSION.
2007	5.0%	4.1%	EU BECAME #1 ECONOMY.
2008	7.3%	0.1%	MIN. WAGE = $6.55/ HOUR. FINANCIAL CRISIS
2009	9.9%	2.7%	ARRA. MIN WAGE $7.25. JOBLESS BENEFITS EXTENDED
2010	9.3%	1.5%	OBAMA TAX CUTS.

Discuss the interest rate fluctuations from 2000 - 2010 in the US ?

Ans....

2000 in Interest Rate
Feb 2	5.75%	Raised rates despite stock market decline in March.
Mar 21	6.0%
May 16	6.5%
2001
Jan 3	6.0%	Bush took office.
Jan 31	5.5%	Bush took office.
Mar 20	5.0%	Recession began. Fed lowered rates to fight it.
Apr 18	4.5%
May 15	4.0%
Jun 27	3.75%	EGTTRA tax rebate enacted.
Aug 21	3.5%
Sep 17	3.0%	9/11 attacks.
Oct 2	2.5%	Afghanistan War.
Nov 6	2.0%	Recession ended.
Dec 11	1.75%
2002
Nov 6	1.25%
2003
Jun 25	1.00%	JGTRRA tax cuts enacted.
2004
Jun 30	1.25%	Low rates pushed interest-only loans. Helped cause Subprime Mortgage Crisis.
Aug 10	1.5%
Sep 21	1.75%
Nov 10	2.0%
Dec 14	2.25%
2005
Feb 2	2.5%	Borrowers could not afford mortgages when rates reset in 3rd year.
Mar 22	2.75%
May 3	3.0%
Jun 30	3.25%
Aug 9	3.5%
Sep 20	3.75%
Nov 1	4.0%
Dec 13	4.25%
Fed Chair Ben Bernanke (February 2006 - January 2014)
2006
Jan 31	4.5%	Raised to cool housing market bubble. More homeowners default.
Mar 28	4.75%
May 10	5.0%
Jun 29	5.25%
2007
Sep 18	4.75%	Home sales fell.
Oct 31	4.5%
Dec 11	4.25%	LIBOR rose. Recession began.
2008
Jan 22	3.5%
Jan 30	3.0%	Tax rebate.
Mar 18	2.25%	Bear Stearns bailout.
Apr 30	2.0%	Lehman fails. Bank bailout approved. AIG bailout.
Oct 8	1.5%
Oct 29	1.0%
Dec 16	0.25%	Effectively zero. The lowest fed funds rate possible.
The Fed kept the rate at zero between 2008 and 2015. Recession ended in June 2009

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