In 2014, the training wheels came off the U.S. economy when one of the biggest stimulus programs in history came to an end, and in the last few months of the year, U.S. economy has outstripped every major developed country. However it still faces competition from China, which even overtook the U.S. briefly when adjusting economic output to exchange rates. CCTV America’s Owen Fairclough reported this story from Washington, D.C.
Finally weaned off one of the biggest stimulus programs in history the U.S. is rebuilding. In Washington D.C., new apartment and office developments are shooting up all over downtown and inner city districts, a sign the country is rebouding.
Unemployment levels have also fallen to about 5 percent, that’s the point where economists talk about full employment.
With interest rates at record lows and an economy on the mend, consumers tend to spend.
However despite increases in spending, people aren’t earning a whole lot more. While there has been a surge in wages towards the end of the year, overall, pay packages in the U.S. have grown less than the global total of around 2 percent.
As 2014 comes to a close, there is one major unanswered question of global importance: When will the Federal Reserve, the U.S. central bank, think things are good enough to start raising interest rates?
The Fed needs rates to go up a bit so inflation rises slightly, which would be good for the frugal and those who save.
But if you’ve taken out any kind of credit, it means paying more, especially for homeowners with lingering memories of the great housing crash of 2008.