“If underlying conditions had truly returned to normal, the economy should be booming,” Federal Reserve (Fed) chair Janet Yellen said. The US economy has successfully recovered for several years. Unemployment now stands at 5.5 percent, the lowest level in 7 years and down from 10 percent at its peak. Furthermore, 2015’s first two months added half a millions jobs.
However the US economy is about to be testing its strength as it is now facing a double challenge. First, foreign economies, particularly China, are slowing down. Second, wages in the US have been growing too slow and the resulting lack of consumer confidence should negatively impact the earnings of US companies. Also, the emergence in business media of unusual explanations about not-so-good figures often means something wrong’s going on.
Citing weather forecast as a main cause for growing concern makes one think that one will fly through some disturbances soon. For instance, a stronger US dollar (USD) will likely hit the US economy as a whole, since US products have become more expensive for a Chinese economy that is slowing down simultaneously. Such conjunction of factors is unfavorable to the US economic growth. That’s why spring 2015 shouldn’t be as prosperous as 2014’s, and why Yellen remained “cautiously optimistic.”