Fiscal Policy Actions . Budgetary actions 1961-1695. After John F. Kennedy took office recession had run its course causing strong shift in monetary policy. . Unemployment rate stood at 6.8% . The Federal sector was in deficit by $ 12 billion in Q4 of 1960. . Expansionary actions in 1961-1962 . Many fiscal steps taken to improve the economy . Liberalization of social security benefits was accelerated and increases in public assistance were initiated. . Full-employment surplus went down to $9 billion by the end of 1961. . Depreciation rules were liberalized and an investment tax credit of 7% on machinery and equipment was enacted