News / Economy

US Economists: Fed Will Cut Economic Stimulus

Trader Christopher Morie, right, works on the floor of the New York Stock Exchange Monday, Sept. 16, 2013. U.S. stocks and bonds are rising sharply in early trading after former Treasury Secretary Larry Summers withdrew from the race to become head of the
Trader Christopher Morie, right, works on the floor of the New York Stock Exchange Monday, Sept. 16, 2013. U.S. stocks and bonds are rising sharply in early trading after former Treasury Secretary Larry Summers withdrew from the race to become head of the
VOA News
U.S. economists are predicting that policy makers at Federal Reserve are on the verge of beginning to trim the economic stimulus measures they have used to boost the American economy from the depths of the 2009 recession.

Top officials of the U.S. central bank started a two-day meeting Tuesday in Washington to decide whether to reduce their $85-billion-a-month purchase of securities to pump more money into the economy. One leading American economist, Jim O'Sullivan of High Frequency Economics, said he expects the Fed to cut the asset purchases by $10 billion a month.

"All signs at this point suggest that they will start tapering, and start winding down the purchase program. Of course, right now they're buying $85 billion per month in securities, so they'll start pulling that number down, probably not by a huge amount," said O'Sullivan. "I'm guessing they'll clip it to maybe $75 billion a month from $85 billion. So they're certainly not tightening at this point, but they're going to at least slow down the rate of easing."

Another economist, Mark Vitner of the large Wells Fargo Bank, said the U.S. economy, the world's largest, is advancing, even if it is not fully recovered from the country's worst economic downturn since the Great Depression of the 1930s. He said that with improvement in the economy, the central bank is looking to shrink its role as a spur to economic growth.

"I think they very much want to begin to normalize monetary policy. And right now it's exceptionally easy, even though the economy, you have a hard time saying that it's exceptionally weak. It's not strong, not strong by any stretch of the imagination, but it's strengthening, and it's moving in the right direction. It's time that monetary policy begins to do the same thing," said Vitner.

Even with the improvement of the U.S. economy, job growth has been sluggish in recent months, and some workers have given up their search for employment. The country's jobless rate has dipped to 7.3 percent - the lowest since late 2008, but still well above the historical norm of less than 6 percent.

The country's stock markets have recovered  from the recession, though, with major indexes near all-time highs. Major corporations have been reporting hefty profits.

The Fed plans to announce any policy changes on Wednesday.

You May Like

Nigeria Incumbent in Tight Spot as Poll Nears

Muhammadu Buhari is running a strong challenge to Goodluck Jonathan, amid a faltering economy and Boko Haram security worries More

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo tells VOA that despite her fame, life is still a struggle as she waits for government's promise of support to arrive More

Video Cambodian Land Grabs Threaten Traditional Communities

At least seven different indigenous groups in Ratanakiri depend mainly on forest products for their survival, say they face loss of their land, traditional way of life More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.9103
JPY
USD
119.37
GBP
USD
0.6704
CAD
USD
1.2481
INR
USD
62.371

Rates may not be current.