What are the key indicators used to measure the health of the US economy?

Key indicators include Gross Domestic Product (GDP), inflation rates (like CPI), unemployment rates, interest rates set by the Federal Reserve, consumer spending, and manufacturing indices such as the PMI.

How does the Federal Reserve influence the US economy?

The Federal Reserve influences the economy through monetary policy, primarily by setting the federal funds rate, conducting open market operations, and quantitative easing/tightening to control inflation, maximize employment, and stabilize financial markets.

What is inflation and why is it important for the US economy?

Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in purchasing power. It's crucial because sustained high inflation erodes savings and real wages, while deflation can signal economic contraction.

How does global trade impact the US economy?

Global trade significantly impacts the US economy through exports boosting domestic industries and imports providing goods at competitive prices. Trade policies, tariffs, and global supply chain disruptions can affect economic growth, employment, and consumer costs.