Fed says U.S. economy strengthened in Q3

Fed says U.S. economy strengthened in Q3

The U.S. economy was strengthening in the third quarter despite continuing weak labor market, said the Federal Reserve on Wednesday, holding off on any new actions to boost the growth.

"Economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year," the Fed noted in a statement released after the meeting of the Federal Open Market Committee (FOMC), the interest rate policy making body of the central bank..

However, "recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated," said the Fed.

The Fed continued to see "a moderate pace of economic growth over coming quarters and consequently anticipates that the unemployment rate will decline only gradually."

Based on information received since the FOMC met in September, the Fed saw "household spending has increased at a somewhat faster pace in recent month". Business investment in equipment and software has continued to expand, but investment in nonresidential structures is still weal, and the housing sector remains depressed.

The central bank also noted longer-term inflation expectations have remained stable.

As a result of the current economic performance, the Fed decided to keep its current programs to help the economy grow.

In its previous meetings, the FOMC decided to keep the interest rate at historic low level and to extend the average maturity of its holdings of government securities.

English.news.cn   2011-11-03 01:23:16