arirang news

The World On arirang

FRI, 2015-09-04 KST

arirang Head Menu

U.S. Federal Reserve cuts 2014 growth outlook for economy Updated: 2014-06-19 22:02:46 KST

The U.S. Federal Reserve has given a positive outlook for the economy this year
even though the economic growth forecast was slashed.
From a projection of 2.9 percent in March growth has been cut to between 2.1 and 2.3 percent.
This is the latest from the two-day meeting of the Federal Reserve's policymakers.
At a press conference on Wednesday, Fed Chair Janet Yellen however expressed the U.S. economy is rebounding and said interest rates currently near zero could begin to rise sometime next year.
If this happens, it'll be the first rate hike since 2006.
The exact timing, though, apparently depends--

"There is no mechanical formula for what a considerable time means. The answer is it depends. It depends on how the economy progresses."

And as widely expected, the Fed cut its monthly bond purchases by another 10-billion U.S. dollars to 35 billion, which shows confidence of a recovering economy.
The Fed, in the meantime, will keep a watch on economic stability.

"Yellen came out and said that volatility may be too low and we agree. Bond market volatility is very low. Stock market volatility is very low. So any sudden spike in volatility could cause interest rates to rise sharply."

Growth projections for 2015 and 2016 have been maintained and Fed officials do forecast a drop in unemployment.
Connie Lee, Arirang News.

Comment

KOGL : Korea Open Government License
본 저작물 중 본문에 해당하는 뉴스 스크립트는 공공누리 제1유형-출처표시 조건에 따라 이용할 수 있습니다.
단, 영상 자료는 저작권 문제로 자유이용이 제한되니, 담당자에게 확인하여 주시기 바랍니다.
(국제방송교류재단 김형선 : ☎02-3475-5263)