The Fed: US Economy Growing Slow but Stable
20 March 2014 19:08 WIB
TEMPO.CO, Jakarta - United States Federal Reserve officials estimate the US economy is growing slowly but steadily in 2014. Sixteen-members of the Federal Open Market Committee met on Wednesday, and projected economic growth of between 2.8 to 3.0 percent this year, a little lower than the 2.8 to 3.2 percent estimated in December 2013.
These prediction indicated that the Fed's policy makers will continue to reduce their monthly bond purchases, and Fed Chair Janet Yellen made an uncharasteristically clear interest rate forecast, saying they would go up in "around six months." This would see a rise to over 1.0 percent.
Despite Yellen's apparent support, 13 out of 16 committee members support the Fed's policy to keep the interest rate at almost zero until the end of 2015. One member supports the increase of the rate this year, while the two others favor the postponement of an increase until 2016.
The Fed expects unemployment will drop further this year than its previous estimation, to just over six percent, despite a slight decrease in a GDP growth forecast of 3 to 3.2 percent, down from 3.4 percent.
FAIZ NASHRILLAH |WASHINGTON POST
