FED: US Economy Recovery On 2013

Central Bank of the United States (U.S.) or The Federal Reserve (the Fed) is confident of improvement in the U.S. economy this year. Optimism was driven by strong global economic growth as the central bank's commitment to print more money in order to curb unemployment.

The Fed this week has decided to continue deliver monetary stimulus by buying bonds worth U.S. $ 85 billion per month and keep interest rates near zero. The policy was carried out until the unemployment rate fell to 6.5% and the inflation rate does not reach the threshold of 2.5%.

The unemployment rate

The Fed optimistic about economic growth in the U.S. even though the data showed, in January 2013 U.S. unemployment edged up 0.1% to 7.9%. "Elections and several U.S. fiscal risk has ended. Crisis Europe has declined and China look set to improve this year, including developing countries. Therefore will be better this year," said James Bullard, head of the Fed St. Louis.

A preliminary report released by the Government of the United States on Friday, showed that there are about 157 000 new jobs were created in January 2013. The report was followed up reports of job creation in the U.S. in the previous two months were also claimed higher, reaching 127,000 new jobs.

 William Dudley, president of the New York Fed also expressed the same optimism. According to him, if the global economy is getting better, then the demand for U.S. goods and services will be increased so as to provide support to the U.S. economy. "Definitely improved and will really help U.S. growth prospects," he said.

Statement Bullard and Dudley became the first public comments of the Fed policy makers after the previously announced monetary stimulus worth approximately U.S. $ 3 trillion with purchases of securities. The number is three times the monetary stimulus that rains in 2008.

Optimism on the recovery of the economy this year driven by an increase in the index of national factory activity in the U.S. manufacturing from 50.2 in December 2012 to 53.1 in January 2013.

Index of factory activity issued by the Institute for Supply Management showed an expansion in the manufacturing sector. Expansion of the manufacturing industry is driven by an increase in product orders and inventory, as well as net profit.

"The report makes it clear the Fed, will continue its monetary policy has been made," said Eric Stein, portfolio manager at Eaton Vance Investment Managers in Boston.