Fed says, economy is leveling out!

The Federal Reserve said on Wednesday that the US economy was showing signs of leveling out two years after the onset of the deepest financial crisis in decades. In an important decision, US central bank also kept its benchmark interest rate to near zero; there by showing interest to support and guide the way to recovery. It seems, Fed made clearest statement to date that it seems the recession nearing an end and shattering financial markets are healing.

I still feel, companies would continue watching the way they spend money, but for sure it seems that worst is behind us. And even the domestic market results show the trend of improvement. Recent IIP data shows that there is improvement in the sentiments, which is also supported by worldwide rally of share market.

There is some good news from other part of the world as well. Germany’s GDP grew 0.3% in second quarter, bringing an end of continuous negative growth since many quarters. French GDP also grew by 0.3%. But in the 16 nation euro zone, GDP slid by 0.1% in second quarter, which is very good if you compare this with 2.5% drop in first quarter.

So, in summary, it seems spring is returning back and hopefully recession will be over soon. However, it has taught few lessons to every country and I strongly feel it has prepared companies in a better way to face any issues in the future. I am sure companies have updated their business risk management plans and might have drawn better strategies to prepare themselves for anything in future.