U.S. Economy: More of the Same ... Subpar Growth Projections Lowered

Ben Bernanke
Yahoo News - The Federal Reserve unleashed a fresh wave of economic stimulus Wednesday as it predicted subpar US growth would be even worse this year than thought. After a two-day meeting the Fed doubled down on a program to lower long-term borrowing costs, as it sharply revised down 2012 growth projections to between 1.9 and 2.4 percent.
That was a half point cut from predictions made as recently as April this year, when cautious optimism reigned. With Fed Chairman Ben Bernanke also pointing to slower progress in reducing unemployment and to spillovers from Europe's economic crisis, that optimism has been put to bed.
Instead the Fed's top policy panel -- the Federal Open Market Committee (FOMC) -- decided to extend a bond-swap program dubbed "Operation Twist" that was to expire at the end of the month. The plan is designed to push down interest rates on long-term bonds, encouraging investors to move money into more neglected securities and lowering costs for borrowers. Read full story here: News New Mexico



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