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The article presents a Congressional Research Service (CRS) report on economic growth and unemployment in the U.S. as of January 2013. It cites reasons for the concern of the U.S. Congress for high unemployment, including its effects on the economic well-being of individuals and on the federal budget. Also discussed are the unemployment rate during postwar recoveries and the outlook for the unemployment rate through 2017.

The article discusses U.S. economic growth after the 2007-2009 recession. According to several indicators, the recession felt during 2008-2009 was the most severe economic contraction since the 1930s, but was much less severe compared to the Great Depression. The years 2008 and 2009 saw the negative shocking the economy more severely compared to what happened in 1929, but was not significant enough to turn a recession into a depression. In 2012, forecasters predict a slow economic growth.

The Islamic Republic of Iran, a resource-rich and labor-rich country in the Middle East, is a central focus of U.S. national security policy. The United States asserts that Iran is a state sponsor of terrorism and that Irans uranium enrichment activities are for the development of nuclear weapons. To the extent that U.S. sanctions and other efforts to change Iranian state policy target aspects of Irans economy as a means of influence, it is important to evaluate Irans economic structure, strengths, and vulnerabilities. Since 2000, Iran has enjoyed broad-based economic growth. However, strong economic performance has been hindered by high levels of inflation and unemployment and low levels of foreign investment. Some contend that President Ahmadinejads expansionary monetary and fiscal policies have worsened unemployment, inflation, and poverty in Iran. Irans economic growth is expected to slow in 2009. Iran has long been subject to U.S. economic sanctions, and more recently, to United Nations sanctions, over its uranium enrichment program and purported support for terror activities. Such sanctions are believed by some analysts to contribute to Irans growing international trade and financial isolation. Irans economy is highly dependent on the production and export of crude oil to finance government spending, and consequently is vulnerable to fluctuations in international oil prices. Although Iran has vast petroleum reserves, the country lacks adequate refining capacity and imports gasoline to meet domestic energy needs. Iran is seeking foreign investment to develop its petroleum sector. While some deals have been finalized, reputational and financial risks may have limited other foreign companies willingness to finalize deals. While Iran-U.S. economic relations are limited, the United States has a key interest in Irans relations with other countries. As some European countries have curbed trade and investment dealings with Iran, other countries, such as China and Russia, have emerged as increasingly important economic partners. Iran also has focused more heavily on regional trade opportunities, such as with the United Arab Emirates. High oil prices have increased Irans leverage in dealing with international issues, but the countrys dependence on oil and other weak spots in the economy have to come to light by the 2008 international financial crisis, which may portend a slowing down of Irans economy. Members of Congress are divided about the proper course of action in respect to Iran. Some advocate a hard line, while others contend that sanctions are ineffective at promoting policy change in Iran and hurt the U.S. economy. In the 110th Congress, several bills were introduced that reflect both perspectives. Policies toward Iran remain a key issue for the 111th Congress. This report will be updated periodically. [ABSTRACT FROM AUTHOR]

The cyclical behavior of the economy is of great interest to Congress, yet the onset of an economic downturn is seldom recognized promptly. Recognition can take more than a year after the fact and is based on the accumulation of considerable supportive data. Therefore, policymakers frequently search for reliable recession predictors. The behavior of interest rates may provide advanced warning of an impending downturn. Following six of the past seven episodes in which the federal funds rate “ the interest rate used to conduct monetary policy “ rose above the level of interest rates on all maturities of Treasury securities, the United States experienced an economic downturn. The exception was in 1998. Following a period of monetary tightening by the Federal Reserve, a similar inversion pattern prevailed from mid-2006 to late 2007. The easing of monetary policy in evidence since September 2007 is consistent with efforts to forestall or minimize an economic downturn. Economic growth has been low since the last quarter of 2007, and some forecasters are now predicting a recession in 2008. INSET: What Is the Federal Funds Market?. [ABSTRACT FROM AUTHOR]

The article looks into the economic condition of the U.S. in 2006. An overview about the monetary policy in the nation, with details on the gross domestic production (GDP) and inflation is provided. Also tackled are the economic forecasts for the country for 2006-2007 and the promotion of economic growth.