US central bank sees economic recovery in coming months
September 3rd, 2009 - 3:48 am ICT by IANS
Washington, Sep 3 (DPA) The US Federal Reserve sees an end to the economic crisis in the second half of the year even as problems are expected to remain on the job market, according to minutes of the central bank’s last meeting released Wednesday.
Still the majority of the central bankers said at the Aug 11-12 meeting that they expected recovery to be slow and stressed that the economy was “still vulnerable to adverse shocks”.
The Federal Open Market Committee said business would likely remain cautious in hiring new workers and income growth would remain “sluggish” along with tight credit conditions for households. Business investment would also remain weak, due to excess capacity and credit conditions, the Fed said.
The Federal Reserve kept interest rates at near 0 per cent at the August meeting and showed no signs of changing course as it said the United States may be emerging from a 20-month recession.
The Fed has kept its benchmark federal funds rate at a 0-0.25 percent range since December and repeated that it would stay the course “for an extended period” as the economy begins to recover.
US President Barack Obama last month also reappointed Ben Bernanke to a second term as chairman of the Federal Reserve Board, electing stability over change during the worst recession since the Great Depression of the 1930s.
- US labour market, economy remain weak: Fed - Aug 31, 2011
- US Federal Reserve keeps interest rates at record low - Dec 17, 2009
- US Federal Reserve keeps interest rates at record low - Nov 05, 2009
- US stocks rally after Bernanke's remarks - Mar 27, 2012
- 'US jobs market still bleak' - Jul 22, 2010
- US Fed keeps interest rates steady near 0 percent - Aug 13, 2009
- US forecasts slow economic growth in coming quarters - Feb 16, 2012
- US stocks flat after Fed-fuelled rally - Mar 28, 2012
- US Fed sees recovery as interest rates kept at 0 percent (Lead) - Aug 13, 2009
- US economy to strengthen in near term: Federal Reserve - Nov 23, 2011
- US central bank keeps interest rates at record low - Apr 29, 2010
- With Bernanke, Obama seeks continuity in time of crisis - Aug 26, 2009
- US central bank keeps rates low amid slowing recovery - Aug 11, 2010
- US Fed sees less certain economic outlook - Oct 20, 2011
- Greek default would roil financial markets: US official - Jun 23, 2011
Tags: 1930s, barack obama, ben bernanke, business investment, chairman of the federal reserve, chairman of the federal reserve board, economic crisis, economic recovery, excess capacity, federal funds rate, federal open market committee, federal reserve, federal reserve board, great depression, open market committee, recession, second term, shocks, tight credit, us federal reserve
