"Monetary policy must be dependent on the realized and expected evolutions of the economy."
- Loretta Mester, Federal Reserve Bank of Cleveland President
New home sales in the United States jumped last month to reach the highest level since at least the year 2008, meaning that construction sector's recovery continues and consumers are more confident in making long-term investment decisions, such as buying new real estate. August's purchases rose to 504,000 units, an increase of 18% on the annual basis. Economists, in turn, estimated a rise to 432,000 from July's 427,000 units. Therefore, hopes that American economy will lead economic recovery among advanced countries are only being confirmed among experts.
The Federal Reserve Bank of Cleveland President Loretta Mester is also positive on economic future on the country. She mentioned on Wednesday that U.S. economy made a great progress in reaching Fed's targets, connected with inflation and labour market. She expects the world's biggest economy to add at least 3% in the second half of the current year and show the same pace in 2015-16. Meanwhile, Ms. Mester addressed a concern about Fed's determination of time, when interest rates are supposed to be raised. She criticized words of Janet Yellen about "considerable period of time", underlying that public has a right to know the terms in a clearer way, meaning that communication approach should be reformulated. Analysts, however, are betting on the next year, when rates are likely to increase.
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