The Federal Reserve
continues to use
traditional and
nontraditional tools
to counter the
strains from reduced credit formation, unemployment
and economic uncertainty, however, policy makers are
confronting new challenges as the economy emerges
from recession and imbalances grow.
Libor has fallen to record low
levels as the Federal Reserve's accommodative
policies have successfully impacted the money
markets. One and three-month Libor are
expected to begin increasing later this year.
Consensus forecasts
anticipate U.S. economic growth gradually
improving over the next 3 quarters.