Economic Recovery Occurring Slowly

A recent report by the U.S. Board of Governors of the Federal Reserve System showed economic recovery is on track, but not as quickly as the Federal Open Market Committee hoped.

The Federal Reserve predicted that employment figures should improve by the end of 2011, which is a further sign of the economy making strides toward prosperity, but the current economic state is concerning. In addition to high unemployment, inflation figures have been high over the past several months. This is also expected to change, and long term inflation predictions foresee normal levels on the way.

Much of the inflation problem can be blamed on interrupted supply chains, especially related to multiple shortages due to the earthquake and tsunami in Japan.

Consumers may be relieved by the government study, but they should keep in mind the fact that the economy has not recovered yet, and a double-dip recession is still a possibility. Because of this, cardholders with significant credit card debt should make paying off their account a priority. This is because owing a large amount of money to a financial institution during an economic downturn can make it extremely difficult to receive financial assistance.