"The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year"
- Ben Bernanke, Fed Chairman
The U.S. growth is slowing due to diminished business investment in response to the Eurozone debt crisis and potential fiscal tightening in the US. Moreover, the Fed predicts slow progress in curtailing unemployment, reiterating that the central bank is prepared to undertake further decisive measures to stimulate recovery.
Bernanke argued that the Operation Twist has been "effective in easing financial conditions and promoting strength in the economy." Similarly, asset purchase programme has "also contributed to economic growth."
"The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year," Ben Bernanke said. The Fed is "prepared to take further action as appropriate to promote a stronger economic recovery," he said.
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