U.S. Central Bank, the Federal Reserve on Wednesday (24 / 6) (Thursday early morning WIB), maintain the base interest rates are almost zero tribe. The Fed estimated that a "back stage of sustainable economic growth" without the pressure of inflation.
   
Conclusion of a two-day meeting, the policy making Federal Open Market Committee (FOMC), as widely expected, maintaining the base interest rate on federal fund a range of zero to 0.25 percent. FOMC, said that the economy is still weak, but still showed signs of improvement.
   
"Information received since the Federal Open Market Committee meeting in April show that the speed is being slowed economic contraction," said the panel.
   

"Although economic activity will remain weak for a while, the Committee continues to anticipate that the policy action to stabilize markets and financial institutions, fiscal and monetary stimulus, and strengthen the market that will contribute to re-stage of economic growth sustainable in the context of price stability," said panel again.
   
Stunt notion that stimulus will trigger inflationary pressure, said the panel, it is expected that inflation will still be soft for some time. "
   
On the economic outlook, FOMC said that "conditions in financial markets in general have increased in recent months."
   
FOMC added that household expenditure "has been showing signs of more steady, but still tense continued by loss of employment, the lower house of wealth, and tight credit."

"Businesses are cutting back staff and fixed investment but appears to be making progress in bringing more supply of stock to be aligned with the sales," the FOMC stated.
   
FOMC decided to vote unanimously to keep the base interest rate and said that "economic conditions are likely to ensure a very low level of federal fund low for a period of extension."
   
The Fed does not give any indication or scale that can support to infuse more liquidity into the financial system, an effort that began this year with the promise to buy more than one trillion dollars in U.S. government agencies and securities in an effort to pressure level interest rates.
   
"The Committee will continue to evaluate the time and the overall number of purchases of securities from development economic prospects and money condition market," said the statement.
   
"The Federal Reserve monitors the size and composition of the balance sheet and will make adjustments to provide liquidity and credit programs as required."

Name   Comment Verification Code

More posts, Page # :