Thursday, September 19, 2013

Federal Reserve bolsters view that US will drive global growth

The Federal Reserve's decision on Wednesday to keep up its stimulus program bolstered the view that a strengthening US economy will drive world growth forward in the coming months.

The Fed's decision to hold back on cutting its purchases of $85 billion a month in bonds may give a temporary respite to developing country economies, which were roiled by the prospect of a reduction. But the easing is inevitable and analysts see more pain ahead for the emerging markets.

The Fed had been widely expected to begin reducing the extraordinary bond purchases that have poured cash into the economy and supported growth at a time when already low interest rates could not be cut much further, limiting the Fed's range of monetary policy options to spur sluggish growth.

http://economictimes.indiatimes.com/news/international-business/federal-reserve-bolsters-view-that-us-will-drive-global-growth/articleshow/22732220.cms 

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