U.S. Macro-Economy: The United States Research Paper

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the president also promised to work with other relevant sectors to assist homeowners in refinancing their mortgages at low interest rates.

On the other hand, Republicans are worried about proposals that would repeat the 2009 stimulus plan despite of President Obama's call for bipartisan support to the bill. They argue that the failed 2009 stimulus plan and its successive policies have shown that huge government deficit spending is not the solution to the stalling economy. While Republican leaders are trying to offer a more moderate stand, they have given a staunch opposition to government's measures of new spending.

After the end of the 2009 economic recession, the Federal Reserve has been involved in various attempts to stimulate economic growth.

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Some of these efforts include lowering short-term interest rates to nearly zero. The Fed's recent efforts are the push to lower long-term interest rates by buying $400 billion in long-term Treasury securities. The proceeds from the sale of short-term government debt will be used to finance such purchases.

While the United States economy has continued to grow at a very small rate, it's far from steady recovery from recession. The impact of the various policy responses on future economic growth is still uncertain as analysts predict a similar growth rate in 2012.

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