Jun 22, 2011
The Federal Reserve cut its forecast for economic growth this year, saying GDP should increase 2.7% to 2.9% for 2011, down from its forecast in April for 3.1% to 3.3% growth. It's the second time that growth forecasts have been lowered this year.
The Fed said in a statement, "The slower pace of recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply-chain disruptions associated with the tragic events in Japan."
The central bank said it sees 2012 growth in the range of 3.3% to 3.7%. In April, the bank had projected 2012 growth at a more robust 3.5% to 4.2%.
The Federal Open Market Committee said it anticipates inflation will "subside to levels at or below those consistent with the Committee's dual mandate as the effects of past energy and other commodity price increases dissipate."
The Committee also confirmed it was ending its $600 million bond purchasing program known as "QE2," and that it would maintain interest rates at their current exceptionally low levels for an extended period of time.
Oil & Gas Post
Promote Your Page Too
No comments:
Post a Comment