Causes
What policy was passed to combat the rising inflation which increased the Federal funds rate from 2.5 to 3.5 in 1957
Tight Monetary Policy
What was the peak unemployment rate in 1958
7.5%
What year did it start
1957
Automobile industry faced a downturn due to what?
European Manufacturers competition and mass production of automobile.
What helped to stimulate economic activity and Create jobs
Federal Aid Highway Act of 1956
What year did it end
1958
Housing industry faced a downturn due to what?
Rising interest rates and tighter lending standards.
What did the Federal Reserve do in response to the recession
Lowered interest rates
What reduced labor supply and slowed production at the same time the Federal Reserve was tightening interest rates to fight inflation
"The Asian Flu"
What events caused Consumer Confidence to decline?
Suez Crisis (1956)
Sputnik(1957)
What year was the Temporary Unemployment Compensation Act
1958
Who led the Federal Reserve
Chairman William Mchesney
What did the Temporary Unemployment Compensation Act do
Provided additional financial assistance to unemployed workers