fed more optimistic on us economy
Last Updated : GMT 01:03:47
Arab Today, arab today
Arab Today, arab today

Fed more optimistic on US economy

Arab Today, arab today

Arab Today, arab today Fed more optimistic on US economy

Washington - AFP

The Federal Reserve said Wednesday it sees US growth picking up and unemployment falling by the end of the year, as it stuck fast to existing stimulus policies despite some short-term economic headwinds. Stating \"it\'s still a little too premature to declare victory,\" Fed chairman Ben Bernanke gave a slightly more upbeat view of the economy and rebuffed demands for more stimulus spending. After a two-day meeting, Fed policymakers said they expected to keep interest rates near zero until late 2014, as Bernanke described further spending now to boost the economy as \"reckless.\" Bernanke offered stronger-than-expected 2012 growth and jobs projections as exhibit A in his defense. The bank predicted unemployment will fall to between 7.8 and 8.0 percent by the end of the year. Unemployment stands at 8.2 percent today, the lowest rate in three years, but nearly 13 million American workers are still unemployed, leading some to call for more measures to juice the economy. The Fed also predicted that growth will reach between 2.4 percent and 2.9 percent by year\'s end, better than previously thought. Against this backdrop, the Fed kept in place its policy of swapping short-term bonds for those with longer-term maturities -- a move that should put downward pressure on real interest rates and stimulate investment. Still, Bernanke remained cautious, stressing he was poised to employ new tools if things turn sour. \"We would not hesitate to use them should the economy require that additional support,\" he said. He warned that a looming debt fight in Congress could be one reason the recovery is derailed. At the end of the year, automatic tax hikes and spending cuts will come into effect if Congress does not act. Bernanke warned that would be a disaster. Using uncharacteristically terse language, he stressed the scope of the problem facing lawmakers and the Fed\'s limited capacity to clean up any broken plates. \"The size of the fiscal cliff is such that there\'s, I think, absolutely no chance that the Federal Reserve could or would have the ability whatsoever to offset that effect on the economy.\" But with politicians stuck in hyper-partisan mode heading toward elections in November, a deal is far from assured. Recent history may explain some of Bernanke\'s reticence. In consecutive years the US recovery has stalled heading into summer months owing to Middle East revolts, European debt crises and a Japanese earthquake. With that burned into the collective conscience, US economists, policymakers and Wall Street have come to greet glimmers of positive news with a certain skepticism. There has been \"a recurring and almost maddening \'stop-go\' pattern to this recovery -- stronger pulses followed by lulls,\" said Joshua Feinman, chief global economist for DB Advisors. Although investors had expected little else to come from the meeting, the fact the Fed tacitly admitted the recovery is only moderate and decided to take no new measures about it initially nudged markets downward. \"There were only a few small word changes... but they were notable changes in tone,\" said Michael Gapen of Barclays, referring to the March Fed statement. \"That signals to us that the Fed is not expecting to conduct further asset purchases or continue its maturity extension program beyond June.\" But the improved jobs and growth forecasts nudged markets back upward. The Dow Jones Industrial closed up 0.69 percent, and the Nasdaq 2.3 percent, also helped by strong quarterly earnings from Apple and Boeing.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fed more optimistic on us economy fed more optimistic on us economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fed more optimistic on us economy fed more optimistic on us economy

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday