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Economic Update: The Close of 2008

Close of 2008

The national economy in 2008 began with an overall economic slowdown that we later discovered was already in a recession. Therefore, no one is sad to see 2008 come to an end. In addition, the recession could push the overall gross domestic product (GDP) down by more than 4%. It appears that there is little relief in the immediate future to the downward push on the national economy.

Federal Reserve
The Federal Reserve (the fed) continues to take aggressive action to help boost the national economy out of its current slump. The fed is still continuing to lower the federal funds rate in hopes of lowering the borrowing cost, so that home buying and business spending will pick up and spur on the economy.

Recession
It is possible that the recession could come to an end by mid-2009; however, it is more likely that the recession will continue well into the third quarter of 2009. Given this fact we probably will not see any GDP growth until early 2010.

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