Fed says US recovery is still too slow

14/12/10 20:34 CET

economy

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Federal Reserve policymakers’ meeting in Washington have said the economic recovery is still too slow to bring down unemployment

Fed Chairman Ben Bernanke reaffirmed the central bank’s commitment to spend 600 billion dollars to buy up government debt in order to stimulate growth and create jobs.

Critics worry that will lead to inflation.

Bernanke and his colleagues will also want to see how much of a boost to the economy comes from the continuation of tax cuts which were due to expire at the end of the year but which Congress is likely to renew.

There is more evidence that the US economic recovery is gathered steam with stronger than expected retail sales in November.

Americans shopped despite high unemployment.

The Commerce Department said sales increased 0.8 percent – up for a fifth straight month.

That caused economists to raise their growth projections for the fourth quarter.

Consumer spending accounts for over two-thirds of US economic activity.

More about: Currency, Federal Reserve, USA

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