U.S. economic growth in the last quarter to strengthen Fed officials may be slow, the Fed's bond purchases next month 's hand stronger than expected rise.
Economic growth at 2.5 % CAGR from April to June , the government Thursday estimates. This is more than twice the growth rate in the first quarter , much higher than the initial estimate of 1.7 percent rate in the April-June .
The Fed is weighing before the meeting , 17-18 September to decide whether to reduce its monthly bond purchases amounted to 8.5 billion yuan , a key measure of economic health . Fed's bond purchases help maintain long-term borrowing rates at record lows. A stronger economy requires less support from the Fed .
Excessive speculation in global financial markets under pressure , the Fed will slow its purchases and higher interest rates in the United States sent . U.S. interest rates have risen , the Fed is expected to buy bonds callback . However , the Fed may decide that the economy is strengthening enough to withstand higher interest rates .
Capital Economics (Capital Economics) , chief U.S. economist Paul Ashworth said, " The rapid growth in the last quarter ," Fed officials should be given more confidence in the economic recovery to gather steam .
Other analysts believe that the Fed may decide to maintain the pace of its bond purchases to help drive the economy. They believe that Fed officials might conclude that the U.S. economy may still be poor falter under the weight of higher interest rates , housing rebound slow or messy resolution of the federal budget of more than a fight.
Almost everyone agrees that the Fed will decide whether to slow its weigh bond purchases of the biggest factors come next week : August - the last jobs report before the employment data , the Fed meeting.
On Thursday, the government upgraded its growth estimates last quarter , mainly because of the U.S. trade deficit narrowed in June . This happened because the United States exported more goods than previously thought , import less . Narrower trade deficit offset weaker spending by the U.S. government .
For this year , analysts generally believe that economic growth will be around 2.5% annual growth rate , thanks to stable employment growth and reduce the impact of federal spending cuts .
This growth rate, however, will meet the Fed's own forecasts , 2013 is too weak. Buy bonds to wait for more data on how the economic conditions in the second half of this year , it may decide to postpone any callbacks.
James Marple , senior economist at TD Bank Group , pointed out that even if the government 's higher estimate of growth in the second quarter , the economy will be in the 2.8 to 3.4 percent per year rate of acceleration in the second half to achieve the Fed's growth forecast for 2013 years.
IHS Global Insight chief U.S. economist Doug Handler said: "We still have an economy is not working on all cylinders , you have a variety of threats, including rising interest rates tensions in the Middle East , causing business and consumer anxiety . "
Another challenge facing the economy : the Obama administration and Congress are locked in a battle over government funding . Finance Minister James Blue said the government will run out of money to pay its bills in mid-October , unless Congress to raise the federal borrowing limit , which is the upper limit in the $ 167 trillion U.S. dollars .
In addition , triggering market expectations that the Fed will slow its bond purchases in emerging countries issue. The expected rise in U.S. interest rates , leading investors to pull money many of these countries , the U.S. high-yield investment assets.
For example, last Thursday , Indonesia 's central bank raised its benchmark interest rates, hoping to prevent the decline in value of its currency half a percentage point .
Given the uncertainty , Handler said he expects the Fed will delay any reduction in its bond purchase program until December .
Naroff Economic Advisors and chief economist Joel Naroff said he thinks the Fed will lower its 2013 growth forecast when it meets in September . Naroff said that if so, it would be awkward , the central bank began to slow down its bond purchase program , while also reducing its growth forecast for this year .
Mesirow Financial chief economist Diane Swonk said she still thinks September the Fed began to slow down its bond purchases may be a month. But she said it was a close call .
Swonk noted that the August employment report next week could be decisive. Weaker than expected employment data may allow Fed officials in favor of maintaining the pace of bond purchases , the evidence they need , she said.
However, employment growth trend is for economists want a solid eight numbers. Employers to increase 192,000 jobs a month on average so far this year .
And the government said Thursday that Americans are the number of people seeking unemployment benefits is still the lowest level in more than five years nearby. Initial claims fell 6,0000 seasonally adjusted 331,000 last week . This means that employers cut fewer jobs .
Thursday's report shows that government spending on economic growth from April to June contraction annual growth rate of 0.9 percent, down 0.4 percent , the initial estimate worse.
Two key areas of the economy - housing and business investment - remains strong. Housing construction increased at an annual rate of 12.9 % in the April-June period , the fourth consecutive quarter of double- digit growth. Nevertheless, the average mortgage rate has risen more than a full percentage point since May . Although they are still at historically low levels , the exchange rate of the sudden surge in the property market could slow the momentum of recovery .
Consumer spending accounts for 70% of economic activity , an increase of 1.8 % per year , the last quarter . This is unchanged from the initial estimate . But it is from the first quarter to 2.3 % annual growth.
The health of the economy in the second half of 2013 is an important signal to the report from last Friday , July consumer spending . Held in June consumer spending . But rising interest rates may cause it to slow down in July .
 



Other News:
Stronger US growth may lead Fed to slow bond buys
Vermont Yankee fight brewing: dismantling reactor
Report cites weak NY employment, wage recovery
Dollar rises vs. yen as Syria concerns ease slightly
Indian rupee hurtles lower as foreign investors flee
Brief military action in Syria would limit risks for Obama
Syrian coalition urges strike on Assad, military support
Guilty plea in $300m New Zealand Ponzi scheme