UCSC HIS 216 - 01 - ECON131-ESSAY#1 (2 pages)

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ECON131-ESSAY#1



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ECON131-ESSAY#1

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Pages:
2
School:
University of California, Santa Cruz
Course:
His 216 - 01 - Hist Amer Religions

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Siyu guo Econ 131 02 04 18 US Economy and US Dollar as an investment The value of dollar is experiencing major changes recently which drawn my attention In this essay I would like to talk about US dollar and US Economy as a whole also sharing ideas if investors should buy this currency now Gross domestic product is the best way to measure a country s economy For the past fourth quarter of 2017 real gross domestic product increased at an annual rate of 2 6 that is roughly about 17 273 trillion BEA The increase in the real GDP reflected positive contributions from consumption investment export and government spending Although this performance is less than the 4 percent annual growth that president Trump has promised there is still a significant increase in jobless rate that it fell to 4 2 from 4 4 in the previous month and it s also surging consumer confidence Trading Economics From another perspective Interest rate in the United was raised from precious 1 25 to 1 5 percent until Jan 1 2018 Trading Economics Policy makers said inflation is rising this year and Economy is expected to further increase gradually in the federal funds rate In view of realized and expected labor market conditions and inflation the Committee decided to maintain the target range for the federal funds rate at 1 1 4 to 1 1 2 percent The stance of monetary policy remains accommodative thereby supporting strong labor market conditions and a sustained return to 2 percent inflation Federal Reserve Joana Taborda The foreign exchange rates are decreasing upon many countries Taking china as an example the exchange rate was falling from 6 89 in Jan 2017 to 6 29 in Jan 2018 FRED The decreasing exchange rate means U S dollar is facing depreciation Furthermore President Trump s policies had to associated with this depreciation During 2017 Trump made political changes on healthcare reform immigration regulation trade protection and especially tax reform The Trump tax plan facilitate the reflow of capital



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