US Economic Recovery not Advancing

By Robert Davis
Oct 30 2010

The rate of recovery for the tepid US economy seems to have stalled according to a new report released today.

According to the report, the country has not slipped back into recession but the rate of recovery has stopped advancing, giving credence to the fact that the US is not out of the woods yet when it comes to financial issues.

The gross domestic product for the US has stayed steady for the past several months. In the last reporting period the index rose only 1.7%, a figure which is considered extremely low for the expected growth in this time period.

Many believe that the still slumped housing market may be to blame for the lack of forward movement. Analysts have said that the lack of response from the housing market in the recovery effort may have limited the recovery of the overall economic structure.

This has prompted the Federal Reserve to take further steps towards repairing the damaged economy. Next month the Federal Reserve Chief Ben Bernake is expected to announce changes to the structure of the financial system that are designed to spur the advancement of the economic solutions.

President Obama has used the new information to argue his point on new tax laws that will be voted on in the next session of Congress. He is asking that businesses be allowed to depreciate new equipment immediately to aid in the recovery of the business structure. This would also limit the amount of taxes that are collected from businesses around the country.