Fed shows little optimism, worst recession is over

The Federal Reserve said on Wednesday that the U.S. economy had begun to level off after the onset of the worst financial crisis in decades.

The U.S. central bank decided to keep US interest rates steady near zero (between 0%-0.25%) and confirmed that it would likely stay there for an extended period to aid the continuing recovery.

The Fed statement unveils the recession is nearing an end while many conditions are stabilizing. That means slumped financial markets are healing.

This is the first time since August 2008 that the committee’s statement has not characterized the economy as contracting, weakening, or slowing.

The Fed statement said it believes those actions, along with the stimulus packages passed by Congress “will contribute to a gradual resumption of sustainable economic growth.”

In addition, there are many signs imply a little optimism, for example, the U.S. unemployment is fewer than analysts had expected, the U.S. consumer spending had risen in June, worker productivity had increased, and the U.S. exports had risen.

Source: CNN, Reuters, Federal Reserve

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