Assignment Article analysis of GDP annual report at USA

2) Unemployment: The recent report of the Wall Street Journal shows falls in the unemployment rate of the United States to 13.3% in May. The payrolls increased by 2.5 million with returning jobs. The labour market snapped back to life and restored in the last two months due to the COVID-19 pandemic. Last month, 2.5 million jobs were increased and offered to the unemployed in a single month. The highest job rate fall was observed after world war II in April 2020. The rate of jobless people fell to 13.3 % from 14.7%. the report concluded that with the increase in the payrolls the jobs are returning high (Mitchell, 2020).   

3) Inflation: Two leading economics including Anna Jacobson Schwartz and Milton Friedman demonstrated complete monetary history of the United States and how the quantity of money collapsed and what was the main reason of great depression. They analyzed the economy at the fastest rate from the past 200 years. The overreaction as just poorly turned out and for the United States, it resulted as inflation boom. The main theme of the report was to become ready for the return of inflation. The report concluded that fed actions resulted in an increase in the quantity of money in the economy of the United States at the blistering rate (Congdon, 2020).

4) Fiscal Policy: The article entitled “This Is Officially Not the 1970s: Bring on Fiscal Policy” by Jon Sindreu described the impact of COVID-19 on the companies and drop in oil prices. The higher economic impact of COVID-19 resulted in a sharp drop in investment in the energy sector (Sindreu, 2020). The economic conditions were aligned with the fiscal policy since the 1960s. the market rolled by the breakdown in the negotiation between Russia and Saudi Arabia for oil production. the oil price drop causes an impact on government spending and tax relief (Sindreu, 2020):

5) Money and Banking/Monetary Policy: The report considers lending programs with monetary policy deliberations loom. The officials discuss the mid-range of assets purchased and policy guidance. The chairman of Fed, Jerome Powell explained the lending program of around $2.3 trillion on the online forum that can halt the economic impact of the coronavirus pandemic. The emergency lending programs are defined under the officials of Federal reserve for the implementation and planning of new initiatives. after having a two-day policy meeting, the leaders suggested some comfortable current policies that can bring major changes. The programs underscored the limits of powers of the central banks due to impact of COVID-19 (Timiraos, 2020).

References of GDP annual report

Congdon, T. (2020, 04 23). Get Ready for the Return of Inflation. Retrieved from www.wsj.com: https://www.wsj.com/articles/get-ready-for-the-return-of-inflation-11587659836

Lahart, J. (2020, 04 29). Why the Economy Was Even Worse Than the GDP Report. Retrieved from www.wsj.com: https://www.wsj.com/articles/why-the-economy-was-even-worse-than-the-gdp-report-11588176851

Mitchell, J. (2020, 06 06). U.S. Unemployment Rate Fell to 13.3% in May. Retrieved from www.wsj.com: https://www.wsj.com/articles/may-jobs-report-coronavirus-2020-11591310177

Sindreu, J. (2020, 03 09). This Is Officially Not the 1970s: Bring On Fiscal Policy. Retrieved from www.wsj.com: https://www.wsj.com/articles/this-is-officially-not-the-1970s-bring-on-fiscal-policy-11583758392

Timiraos, N. (2020, 04 23). Fed Focuses on Lending Programs, but Monetary Policy Deliberations Loom. Retrieved from www.wsj.com: https://www.wsj.com/articles/fed-focuses-on-lending-programs-but-monetary-policy-deliberations-loom-11587649697