Fed tips US recovery

The US economy is set to resume growth soon, the Federal Reserve has said.

In its monthly monetary policy statement, the Federal Open Market Committee said the data available since June has indicated that the economy is "stabilising".

There will be "a gradual resumption of sustainable economic growth in a context of price stability", the committee added.

It announced that as inflation is likely to stay low, the federal funds rate would be held at a range between zero and 0.25 per cent.

Those keen on buying property in the US may be encouraged by the news that the central bank is so optimistic.

Over recent weeks some positive signs have been seen in the US economy.

Among these are the latest US government employment figures, showing the joblessness rate to have declined from 9.5 per cent in June to 9.4 per cent in July, the first fall this year.

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