CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

U.S. Fed: Economy recovers moderately, further stimulus needed

07-15-2010 08:26 BJT

WASHINGTON, July 14 (Xinhua) -- The Federal Reserve saw the U.S. economic recovery was proceeding at a "moderate pace," but further monetary stimulus may be needed if the economy shows more serious signs of slowing, according to minutes of the latest central bank meeting released on Wednesday.

Top officials of the Fed said that they continued to anticipate a moderate recovery in economic activity through 2011, supported by accommodative monetary policy.

With risks now growing, Fed officials at their June 22-23 meeting saw the need to explore new options for bolstering the economy. That's a turnaround from earlier this year when they were moving to wind down crisis-era supports.

According to the Federal Open Market Committee (FOMC), the central bank's policy making group which meets eight times a year to set interest rates, the Fed was considering whether to implement further policy stimulus if the outlook were to worsen appreciably.

Fed officials projected economic growth in 2010 will reach 3.0 to 3.5 percent, lower than in April when the Fed presented a relatively stronger forecast, saying the economy can grow between 3.2 percent and 3.7 percent this year.

The new document showed that Fed officials saw the "economic outlook had softened somewhat." One-half of Fed officials saw " risks to growth as having moved to the downside."

Looking forward, the Fed expects the economy will grow 3.5 to 4. 2 percent in 2011 and 3.5 to 4.5 percent in 2012.

The central bank also projected that the average unemployment rate in the fourth quarter of 2010 was 9.2 to 9.5 percent, slightly higher than its previous forecast of 9.1 to 9.5 percent.

Unemployment, currently at 9.5 percent in June, is a key concern of the Obama administration.

To tackle the financial crisis and foster the recovery, the Fed has left a key bank lending rate at between zero and 0.25 percent since December 2008. That has kept rates on certain credit cards, home equity loans, some adjustable-rate mortgages and other consumer loans at their lowest points in decades.

As the economic outlook is getting worse than expected, economists predict the Fed will keep the key rate at record low well into next year and possibly into 2012.

Editor:Xiong Qu |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program