U.S. economy is possible to grow slower in the first quarter due to high fuel prices that make Uncle Sam's domestic consumer spending is holding.
U.S. gross domestic product increased by 2% in the year after previously had jumped 3.1% in the past three months. Based on a survey conducted by Bloomberg at 80 economists known expenditures at the household level from January to March was recorded half lower than the quarter IV/2010.
In an effort to spur economic growth, the central bank makes policy for complete set of stimulus to June amounted to U.S. $ 600 billion. While the high price of fuel oil since 2008, will certainly affect the spending slowdown society during this year. However, a number of companies like United Parcel Service Inc. is reaping the benefits of business investment and inventory reserves.
"It's increased fuel prices is impacting on the acceleration of growth. However we still remain on track. The economy is getting better because jobs and the opening of the factory began to recover, "said IHS Global Insight economist Patrick Newport.
Separately, the Fed reported estimated average unemployment rate at the end of the third month of 2011 will be reduced to 8.4% from 8.7% previously. This figure is still lower than the unemployment rate recorded in January at 8.8% -9%. Central Bank estimates that unemployment in the U.S. in 2012 will be in the range 7.6% -7.9% lower than January of 7.6% -8.1%.
"labor market increases gradually. The longer the growing level of our confidence, "said Central Bank leader Ben S. Bernanke in a press conference that discusses the Penangguran during the recession in the U.S..
Central Bank's commitment to record the stimulus in contrast to rising interest rates this month by European Central Bank. Policy tightening by a number of countries, including China, Brazil and India do to deal with high inflation.
Bernanke noted the Fed's first leader who gave briefings to the media following the policy of the Federal Open Market Committee (FOMC). While at the same time a number of partner countries such as Europe, Japan, Britain, and Canada actually minimizes the news conference with the media.
To the media, Bernanke stated that the Central Bank will mengelontorkan fund U.S. $ 600 billion of debt securities that will be programmed in June. He admitted the policy was made possible not to have significant effects on the financial markets or the economy in general. However, he said, the central bank will continue the policy was to reduce debt after June.
"We will complete this program until the end of the second quarter. At the end of this program may not have significant effect on the financial markets or the economy," he said.
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