The Fed will not touch interest rates. They will remain exceptionally low for an extended period. Unemployment will remain high. The Federal Reserve (Fed) downgraded Wednesday the U.S. growth forecast for 2011 to between 2.7% and 2.9%, noting that the economy is growing at one slower than expected pace, said in a statement. Only two months ago, the forecast for this year was between 3.1% and 3.3%. The Fed also has revised downward the growth in 2012 to a strip of between 3.3% and 3.7%, when two months ago envisioned between 3.5% and 4.2%.
Low rates hours before its forecast of growth, the Fed had advanced some of its conclusions from the two days of the Fed’s open market Committee meeting. In them he expected that to boost economic recovery underway and ensure that inflation will be consistent with the mandate, the reserve will keep interest rates of rrencia, between 0% and 0.25%. Rates continue at these levels exceptionally low for an extended period of time, he returned to claim the lead agency of the United States monetary policy. Rise in inflation also noted that inflation has picked up something, although he reiterated that the long-term price expectations remain stable. Another of the concerns shown by the body chaired by Ben Bernanke is the weakness of the labor market since the unemployment rate, which closed may at 9.1%, remains high. Despite this revision downwards of the expectations, the Fed believes that this slowdown is due to temporary causes. Among these reasons, he cited the cto of high prices of food and energy in consumer purchasing power, as well as alterations in the supply chain associated with the tragic events in Japan, in rrencia to the earthquake and tsunami of last March. The end of the monetary stimulus that is why the Fed He stressed that he expects that the pace of recovery increase the next few months and the unemployment rate to resume its gradual decline, and confirmed at the end of the month will conclude the released monetary stimulus a year ago for an amount of $ 600 billion in addition, affirmed that it will monitor the Economic Outlook and financial developments and will act as it is due to foster maximum employment and price stability. Source of the news: the Federal Reserve lowers its forecasts of growth of EE UU