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Fed to the rescue in US economic recovery?

Business Times - 12 Oct 2010


Fed to the rescue in US economic recovery?

But if it does more QE, then the US could be accused of doing what it says China is doing

By LEON HADAR
WASHINGTON CORRESPONDENT

EVEN the most cheerful forecaster looking to a speedy American economic recovery from the Great Recession would have been drowning in pessimism over the weekend in Washington.

A US government report indicating that the high unemployment rate was holding steady as state and local governments were continuing to cut more jobs while the private sector was failing to create new ones suggested that the fiscal and monetary measures adopted by the federal government have not succeeded in accelerating the promised recovery.

And while finance ministers and central bankers from around the world gathered in Washington for the annual meetings of the International Monetary Fund (IMF) and the World Bank last Saturday pledged to work together in trying to resolve the global economic tensions over exchange…