AFR US Fed says US recovery lost momentum

The post below is just a summary of the article from the AFR, as I do not have an online account with AFR I will just summarise the main point of the article.
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If this aint the understatement of the week. You know things are crook when the US Fed admits anything.


From the:
Australian Financial Review
4 May 2015
by Sam Flemming

The US recovery has lost momentum and the pace of hiring has moderated, the Federal Reserve said, acknowledging a weakening in the economy has prompted markets to push back expectations of interest rate rises.

(The following statement is very similar to what the Fed was saying before the LAST GFC blaming transitory factors.)

The central bank said that growth had "slowed" during the winter months reflecting 'in part' transitory factors, while growth in household spending had declined even amid strong rises in real incomes, and exports had fallen.

However; in a statement after its monthly rate-setting meeting the Fed said that despite the weakening in output and employment , growth it expected activity to expand at 'a moderate pace'.

The statement came hours after official data showed US economic growth faltered in the first quarter, with gross domestic product rising at a sluggish 0.2 per cent annual pace amid a surging dollar and weather-related disruptions.

The growth figure was a fraction of the 1 per cent rate of expansion predicted by economists and marked a sharp slowdown from the 2.2. per cent recorded for the fourth quarter of 2014.


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