America's 5 year downturn

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Jonone
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Joined: Fri Jul 14, 2017 2:40 am

America's 5 year downturn

Post by Jonone »

"What the central bank of the world's biggest economy, the US, said last night was that there would be no proper recovery in that economy for at least another two years.

That was the meaning of the announcement of the US Federal Reserve that it anticipates holding its official interest rate, the so-called federal funds rate, at exceptionally low levels "at least" through mid-2013.

Those exceptionally low levels are between 0 and quarter % - or as close to zero as it is possible to get.

This is quite remarkable. It is an official recognition that the credit crunch and banking crisis of 2007-8 is likely to still be preventing adequate growth in the US five years later."

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