US Federal Reserve says economy has slowed; takes no action
The US Federal Reserve said economic growth slowed to an annual rate of 1.5 per cent in the second quarter of the year, down from 2 per cent in the first quarter. In a statement adopted on a 11-1 vote at the end of a two-day policy meeting, the Fed noted that while the domestic housing market was improving, global economic problems still posed a significant risk to the US economy. No corrective actions were announced, though some analysts predict the Fed may launch a new bond-buying program in an effort to lower interest rates and boost borrowing and spending. The Federal Reserve has already implemented Operation Twist, a program that aims to buy long-term Treasuries in order to drive long-term interest rates down.
The US Federal Reserve said economic growth slowed to an annual rate of 1.5 per cent in the second quarter of the year, down from 2 per cent in the first quarter. In a statement adopted on a 11-1 vote at the end of a two-day policy meeting, the Fed noted that while the domestic housing market was improving, global economic problems still posed a significant risk to the US economy. No corrective actions were announced, though some analysts predict the Fed may launch a new bond-buying program in an effort to lower interest rates and boost borrowing and spending. The Federal Reserve has already implemented Operation Twist, a program that aims to buy long-term Treasuries in order to drive long-term interest rates down.