After a terrible few years with slow growth and a recessive economy, the American economy finally seems to be getting back on its feet. After the 2008 financial crisis that dropped the inflation rate wherein the Federal Reserve was forced to drop interest rates to 0 percent, this seems to be a welcome sign.
The interest rates were raised in December last year after nearly a decade of it stagnating at 0 percent. A certain amount of inflation is required for any nation to grow. The ability to stabilize the middle ground between these two factors is what the Federal Reserve has been working on for quite a while now.
The Federal Reserve has credited most of this rise in inflation to the wage increase in the healthcare sector. The boost in the healthcare sector wage rates has been drastic in the past few years. With the focus of the Obama administration on healthcare, there has been a substantial level of importance that has been given to this sector. Healthcare personnel that includes nurses, doctors, and general physicians along with ancillary care specialists has risen greatly.
In spite of the surge in healthcare wage rates, there is still a challenge being faced by the general American economy, as it doesn’t seem to be reaching its desired inflation rate. The Federal Reserve of America has set its target inflation rate at two percent for this fiscal year.