Thursday, September 18, 2014

Fed: Interest considerable time low – Volkskrant

Fed: Interest considerable time low – Volkskrant

17/09/14, 20:32 – Source: Reuters

© ap. The headquarters of the Federal Reserve.

The Federal Reserve, the American dome central bank maintains its promise that the interest rates after the full completion of the current stimulus a ‘considerable period’ in the current, very low level remains. That made the board of the Fed announced Wednesday after its two-day policy meeting.

The Fed keeps interest rates at the historically low level of 0 to 0.25 percent. The rate at which the Fed buys debt to stimulate the economy, is further reduced from 25 billion to $ 15 billion per month. At the next policy meeting in late October, the aid program is expected to be terminated altogether.

The decisions are consistent with what economists were expecting, but they kept in mind that the Fed would prepare a spoedigere the market with his choice of words rate increase than expected so far. Two of the central bankers on the board there have also insisted, as shown by the statement published after the meeting.

Since the last interest rate meeting, little has changed, according to the Fed in late July. The American economy is still growing at a moderate pace. On balance, the labor market conditions improved slightly, but the rate has barely fallen. There are still too many people who work less than they would be able and willing, and to many people given the low probability of success are not looking for work, said President Janet Yellen in her notes.

Fed has its growth estimates for 2014 and 2015 decreased slightly compared to the previous estimate in June. For this year, a growth of 2 to 2.2 percent is from 2.1 to 2.3 percent in June. Next year, the American economy is growing, according to the new estimate of 2.6 to 3 percent. That was before 3 to 3.2 percent.

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