US companies are hoarding USD 1 trillion meaning that one thousand billion dollar which is equivalent to almost one third of US Federal Govt budget.
They are hoarding as the economy is in sluggish position and future is still unknown and uncertain. So companies are not investing meaning not adding jobs.
Although Federal Reserve has reduced its rate (known as Fed Rate) to a record low but things are not improving (I feel so) but good thing is Texas unemployment rate has dropped to 8.1 percent this September.
Cutting interest rate is not enough. Important issue is confidence. As soon as, companies will have confidence on economy, they will start spending their USD 1 trillion. Only confidence and spending can boost the economy.
How to enhance confidence? This is we need to investigate further.
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