Employment is high and rising, unemployment is low, incomes are increasing, profits are high, the Federal budget deficit is plummeting, state and local finances are increasingly strong, and inflation is benign. The overriding economic objective -- shared by all participants in the economy -- is to keep the good news flowing.
In addition, since many emerging economies are adopting a fixed foreign exchange policy pegging own currency to the U.S. dollar, that also seems to have brought about monetary easing effects. Those developments have improved significantly the financial environment in the emerging economies mainly through an increase in credit provisioning and a rise in asset prices, thereby underpinning their economic recovery.