The highest inflation was in 1990 which the percentage is 3.699%. Throughout 1989 and 1990, the economy was weakening because the U.S. Federal policy was to reduce inflation, a process which limited economic expansion. Another reason that cause the weakening of the economy was the enforce of the Tax Reform Act of 1986 which lead to the end of the real estate in the early to mid-1980's resulting in lowered property values, lowered investment incentives, and job loss. The changes in GDP growth began to come out in the early of 1990, however, overall growth remained positive. The immediate cause of the recession was a loss of consumer and business confidence as a result of the 1990 oil price shock, coupled with an already weak economy. In July