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Federal Reserve Sees Slower Growth, But Maintains Plans to Trim Stimulus

New York Times (06/19/14) Binyamin Appelbaum

The U.S. Federal Reserve said on June 18 that it would reduce monthly bond purchases by $10 billion in July to $35 billion as planned, with purchases to end this fall. Noting that economic activity has rebounded in recent months, the central bank also said it would probably begin increasing its benchmark interest rate in 2015.

The Fed reported improvements in labor markets, household spending, and business investment. However, Fed Chairwoman Janet Yellen said recovery would continue to be affected by damage from the recession and expressed concern that some unemployed people would be permanently excluded from the job market.