Fri, Jun 24, 2011 - Page 10 News List

Fed freezes policy despite slow growth

‘TEMPORARY’:The Fed said US economic recovery was continuing at a moderate pace, but it slashed its GDP forecast for this year by 0.4 points to 2.7 to 2.9 percent

AFP, Washington and HONG KONG

Bernanke also warned of potential risks to the global economy from Greece’s sovereign debt crisis.

“If there were a failure to resolve that situation, it would pose threats to the European financial systems, the global financial system and to European political unity,” he said.

The Fed said it would complete its plan to end its US$600 billion second round of bond buying, or quantitative easing on Thursday next week.

It also maintained its policy of reinvesting principal payments from its securities holdings to keep cash pouring into the economy.

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