August 11, 2010 9:01 AM

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US central bank signals slow economic expansion

The United States central bank, the Federal Reserve has signaled that the country's economic expansion is slowing down and it will continue its policy of stimulus spending to help bolster it. In a statement, the Federal Open Market Committee of the central bank said, the recovery will be more modest than previously expected. Employment has slowed and the real estate sector remains at a depressed level. In response, the committee decided to buy more government bonds, adding to the central bank's huge portfolio assets. The hope is that it will increase the amount of money available for banks to lend to each other as consumers.

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