A report by the nation's leading economic research organization says the US is in a recession. On Monday, the National Bureau of Economic Research reported the slump began last December. The non-profit says this 12-month slump exceeds the average 10-month long recessions seen since World War II.
Joseph Daniels, Economics Professor at Marquette University, says this a deeper recession that any seen since the 1980's. However, unlike the early 80's which were marred with high inflation and high interest rates, policy makers have different options now.
"In terms of cutting interest rates the fed doesn't have room to go they're kind of pushing on a string there," says Daniels.
Other moves by the Fed and Treasury department liking getting liquidity back into lending institutions is a step in the right direction, according to Daniels. The economist says raising taxes "anywhere" is a bad move right now.
He believes we won't move out of the recession until the third quarter of next year.