Fed lowers its support to the U.S. economy

US economy
US economy

The Monetary Policy Committee of the U.S. Federal Reserve decided today to keep unchanged the key interest rates and slightly reduce the monetary support to the U.S. economy. The Fed will reduce from January monthly volume of liquidity pumped into the U.S. economy at 75 billion dollars and can continue a reduction in the rate of asset purchases made ​​by the next meeting if the labor market improved and inflation reverted to the target of 2% specified in a notice of the U.S. central bank.

Federal Reserve Bank of Chicago

Federal Reserve Bank of Chicago

Moreover, the Fed has revised upwards its forecast for growth in 2014 and slightly below that for unemployment.The country’s GDP will grow by 2.8% to 3.2% next year, more than the increase from 2.9% to 3.1% provided by the Fed in September, according to the predictions of the Monetary Policy Committee.

US economy

US economy

The Fed also seemed optimistic regarding employment, revising downwards its forecast for the unemployment rate in 2014 from 6.3% to 6.6% versus 6.4% to 6.8% which provided until now.

By Nicole P.

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