Even though Washington and other private surveys report some growth in these past months, Governors of the different states of the US said at the National Governors Associations meeting this Saturday that the worst has still not come and they had to brace themselves for it. The representative stated that there is rowing unemployment and price level is rising. The governors also said that states face a budget deficit totaling $134 billion.
The governors agreed that the solution to this problem is only job creation. They said that Obama had helped them out at the edge of a major economic abyss but much more needs to be done to help bring things back to normal. The governors agreed that that'much more' means creating more jobs to counter the growing rate of unemployment. They looked forward to the still-being-debated $25 billion infusion of cash that the Congress is considering to give to states. Even though January has marked a slight fall in the unemployment rate, states are still facing double-digits unempolyment rates ans the governors seemed pretty anxious to do something about it. With President Obama busy in convincing the senate about the benefits of his health care program, it would be interesting to see what exactly states do to help that growing unemployment.
Attached is a graph of unemployment rates and FedFunds Rate by MarketOracle.co.uk
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