Now Reading:

Fed still cautious on recovery


Fed still cautious on recovery


There was no US interest rate hike and a lukewarm economic assessment from the Federal Reserve after their monthly policy-setting meeting.

The central bank’s policymakers said continued high unemployment justified the need for more stimulus money to help speed up the slow and tentative recovery.

So it intends to continue plans to buy $600 billion dollars in government debt, in essence printing new cash to do that, despite concerns that will cause inflation.

The statement from Fed Chairman Ben Bernanke and his policymakers was slightly more upbeat than their assessment in December when they said the recovery had been insufficient to bring down unemployment at all.

The US economy is expected to have expanded by a reasonably robust 3.5 percent annual rate in the fourth quarter.

There are some green shoots of recovery – consumer spirits are rising, factory activity is strengthening, claims for unemployment benefit are sliding and there was a big jump in US single-family home sales in December, but so far it is not enough for the Fed.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article