The Economic Situation in 2003

In the second half of 2003, the U.S. economy grew at an annual rate of 6 percent. The pickup momentum showed no sign of abating in the first quarter of 2004 and is projected to continue in the rest of the year. Gross domestic product (GDP) in the year increased by 3.1 percent, the growth rate in the third quarter, in particular, reached 8.2 percent. In the opinion of U.S. mainstream economists; this is a natural reflection of …

…S. output, which would slow the pace of recovery. The low level of short-term interest rates presents another problem. It reflects exceptionally easy monetary policies to combat economic weakness, while also erodes room for future maneuvering. As soon as the monetary policy is tightened too much and too quickly, it could hurt the economy expansion, which has been relying on the low short-term interest rate. http://english.peopledaily.com.cn http://news.xinhuanet.com/english