Azerbaijan, Baku, 14 April /corr. Trend A.Badalova / The British leading independent macroeconomic research consultancy Capital economics forecasts decrease of the rates of U.S. Federal Reserve System (FRS) up to 1% from the current 2.25% by summer, a source at Company reported to Trend . The FRS decreased the key interest rate by 3% up to 2.25% to overcome the impacts of mortgage crediting.
According to the chief international economist of Capital Economics, Julian Jessop, said that the next decisions on the FRS interest rates will depend on the coming economic data and events in the financial markets.
However, Jessop stated that the continue fall in the consumer trust means that the FRS should do something more.
The meeting of G-7 Finance Ministers and Central Bank Governors took place last week, which devised a 100 days plan for fighting against crisis in the financial markets of the world. According to the plan, the financial companies should describe the most risky investments in their half year reports, assess their assets and attract necessary amount of investments to avoid crash. The G7 statement says that the rates of economic development in the world may further slow down due to the growing financial crisis.
The IMF has cut its US GDP forecast to 0.5% in 2008 and (even more remarkably) to just 0.6% in 2009. These numbers are well below the latest published consensus of 1.3% and 2.1% respectively. Thereafter we expect US GDP growth to accelerate to around 1.5% in 2009.
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