| Updated:
Fed to start scaling back fiscal stimulus
US CENTRAL bank the Federal Reserve said yesterday it will start scaling back some of its unprecedented fiscal stimulus measures, as the nation heads for a recovery in the second half of the year.
The Fed said “improved market conditions and declining use of the facilities” meant it could tackle fears about how the government is going to withdraw the costly programmes.
The bank eased its forecast for the country’s economic contraction to between 1 and 1.5 per cent, and said the economy will grow by 2.1 to 3.3 per cent in 2010.
Meanwhile, 175 prominent economists signed a petition urging US politicians to avoid politicising the Fed’s decision on emergency loans to financial decisions.