World Economy Limps One Step Forward, One Back |
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June 25,2009
The global economy served up a mixture of green shoots and bitter herbs on Thursday, matching comments overnight from the U.S. Federal Reserve that the recession there appeared to be easing, but at no great pace.
The global economy served up a mixture of green shoots and bitter herbs on Thursday, matching comments overnight from the U.S. Federal Reserve that the recession there appeared to be easing, but at no great pace.
"Information received since the Federal Open Market Committee met in April suggests that the pace of economic contraction is slowing," the Fed said in its policy statement at the end of a two-day meeting.
It kept interest rates near zero, stuck to, but did not increase, its huge program of buying government and mortgage debt, and warned that the economy would remain weak for some time.
Weekly jobless claims data, due at 1230 GMT (8:30 a.m. EDT) on Thursday, will give another reading on the state of the U.S. economy.
International Monetary Fund deputy managing director John Lipsky said the Fund's forecasts for the world economy could be raised slightly, given some positive signs, though he added that there was still significant uncertainty about the pace and timing of recovery.
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