Federal Reserve (Fed) was forced to reduce their countries' economic growth projections for this year. Because the U.S. economic recovery this time is hampered by high world crude oil prices and the effects of natural disasters that hit Japan last March. According to the Associated Press, the Fed Wednesday afternoon Washington time revised its growth projection for the U.S. economy. In April, the projected growth in the range from 3.1 to 3.3 percent. However, this time, the estimate dropped to 2.7 percent range up to 2.9 percent.
The Fed also reduced its growth forecast for next year the U.S. economy, from the range 3.5% - 4.2% to 3.3% - 3.7%. Chairman Central Bank is also considered that the U.S. jobless rate still remains higher than expected. Revisions were made after the leadership of the Fed's regular meeting held over two days. According to the Fed, the decline of U.S. economic growth due to high energy prices and the impact of the earthquake and tsunami in Japan, which eventually weakens the production of automotive and other products.
Fed governor, Ben Bernanke, considered that the current economic difficulties were more complicated and potentially have a much longer period than expected.
"We do not have the right indicators to explain why the weak economic growth is still ongoing," Bernanke said. He also acknowledged that the weak domestic housing market and problems in the banking in the U.S. turned out to last longer than expected. The Fed statement this time is not seoptimistis from statements they spend eight weeks in advance. At that time, the Central Bank believes that the labor market will be gradually improved so as to push the unemployment.
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