The Post Millennium Period: 2000-the present

The economy entered into a mild recession in the final days of the Clinton Administration which was exacerbated by terrorist attacks of September 11, 2001. Upon entering office, President George W. Bush faced opposition in Congress but ultimately succeeded in winning a $1.35 trillion dollar tax cut program, one of the largest in history. By 2004, the economy showed signs of improvement in terms of GDP growth, however, the CEPPI indicator declined mildly between 2001 and 2003. Despite the modest improvement, the CEPPI indicator remained at a Good level between 2001 and 2007.

In December 2007, the United States entered the longest post-World War II recession, which included a housing market correction, a subprime mortgage crisis, soaring oil prices and a declining dollar value. As the economy worsened, both President Bush and his successor, President Obama, engaged in a series of politically unpopular stimulus and bail-out plans designed to stabilize the economy. Nevertheless, the CEPPI Index registered a sharp decline in 2008 and 2009 marked by rising unemployment, negative GDP growth and large budget deficits not experienced since WWII.