Current Trends In U.S. Economy

The interesting thing about this recession is that signs of it were visible as far back as two years ago. One indication of economic malaise was an enormous credit expansion accompanied, curiously enough, by a slowing down in the rate of economic growth. Physical output seemed, in the main, to be standing still and in some sectors even receding. Prices continued to rise while inventory accumulation began to taper off. And these trends continued on into late 1957.

Suddenly capital investments dropped $750 million. In September, production, sales and personal income declined, continuing to do so on into January. The Federal Reserve Board, discovering that the situation was no longer inflationary but one in which things had to be st...