ABSTRACT

Economic Slowdown: Issues and Policies [Updated October 17, 2008]   [open pdf - 205KB]

"Recent policies have sought to contain damages spilling over from housing and financial markets to the broader economy. These policies include monetary policy, which is the responsibility of the Federal Reserve, and fiscal policy. Legislators and the President adopted an economic stimulus package (P.L. [Public Law] 110-185) on February 13. Another stimulus package is under consideration. Over the past few months, the government has also intervened in specific financial markets, including financial assistance to troubled firms. Legislation authorizing a massive intervention in financial markets was adopted on October 3 (P.L. 110-343); it includes authority to purchase $700 billion in troubled assets. The estimated budget cost of the stimulus enacted in February was about $150 billion for FY2008. The largest provision (in terms of budgetary cost) was a tax rebate for individuals. The Senate committee bill also included an extension in unemployment compensation benefits; the Iraq/Afghanistan supplemental appropriations completed June 26 included a 13-week extension, signed on June 30. The current stimulus proposal would increase spending on infrastructure, unemployment benefits, Medicaid, and food stamps by $50 to $60 billion."

Report Number:
CRS Report for Congress, RL34349
Author:
Publisher:
Date:
2008-10-17
Series:
Copyright:
Public Domain
Retrieved From:
U.S. Department of State, Foreign Press Centers: http://fpc.state.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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