To stabilize US economy and the financial system, the Federal Reserve has announced to offer another $800bn stimulus.

According to the US Treasury Secretary Henry Paulson, the package has been announced for the availability of more lending to consumers.

The new package will be used to buy mortgage-backed securities and thaw out the freezing consumer credit market.

US President-elect Barack Obama says: “Budget reform is essential because of the current economic crisis. And it’s not an option, but a necessity.”

Meanwhile Mr. Paulson said, “It would take some time to get out of these difficulties in US market and economy and we will have to face new challenges.”

“We are determined to handle these situations efficiently and use all the available tools to strengthen our financial institutions and stabilize financial markets.”

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According to the US Commerce Department, a 3.3 percent growth was noted in the US economy during the second quarter and it was much higher than the expected 1.9% growth.

This growth is being considered a result of strong exports, weaker dollar and tax rebates that help to boost consumer spending.

During the first quarter, GDP grew at a rate of 0.9 percent and a 0.2 percent contraction was noted during the last three months of 2007.

However, it has been warned by the Federal Reserve that economy will be weak in this year.

“We are beginning to see some sunlight, but we are not out of woods yet,” stated John Wilson, who is equity strategist at Morgan Keegan.

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During July a considerable surge was noticed in wholesale inflation that left the increasing prices at the fastest pace in almost thirty years. After that recent drop in oil and other commodity prices, there are hopes that inflation may be bridled, but some economists believe that it will take some more time to ease that pressure on Wall Street after the widespread nature of the July price surge.

According to the Labor Department report, there was 1.2 percent increase in wholesale prices during July and the rising costs for energy and other materials were the basic factors behind surge.

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The economy of the United States is getting boosted by the regimes’ $168bn (£84bn) spur package, as said by the US Treasury Secretary Henry Paulson.

The governmental findings highlighted that Gross Domestic Product (GDP) enhance at a rate of 1.9% from 0.9% annually amid April and June.

Mr. Paulson estimated that the United States economy would get stronger in the coming years.

The figure was the worst than estimated and led shares towards decline.

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WASHINGTON: The regime funds insufficiency would rush forward past half-trillion dollars coming year, according to ominous new projections, a record downpour of red ink that compromises to force the winner of the presidential contest to spectacularly change his monetary agenda.

The shortage would knock around $482 billion in the 2009 budget year that would be inborn by Democrat Barack Obama or Republican John McCain, the White House projected on Monday.

This figure is certain to get higher after adding the tens of billions of dollars besides Iraq war donation it doesn’t take account of, and the entirety could be elevated yet if the economy declines to make progress as the management forecasts.

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Last week, the oil prices reached above than $139 that led millions of the American towards anger, agitation and slogans against the regime of the U.S. In this regard, the president Bush announced that high oil price is the concerning issue but not tough to combat with high oil prices and inflation.

The United States is suffering from inflation for the first time. It has already suffered from a huge loss during the recession era of 1930s where high crude oil prices demolished not only the U.S but also the entire world.

Today, millions of people are heavily suffering from societal, economical and cultural depressions and it is occurring due to widespread inflationary trend all around the world. The majority of the people are involved in hypertension, blood pressure, diabetes, depression and manic disorders due to high commodity prices and events of natural disasters and famines.

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