Japan quake hits US growth

Washington, June 23: The Federal Reserve said yesterday the pace of US economic recovery was proceeding more slowly than expected, but it expressed hope growth would pick up soon.

It also pinned a quickening of inflation largely on temporary factors, including higher commodity prices and supply chain disruptions from Japan’s earthquake.

The central bank said the forces pushing up prices should dissipate, allowing inflation to subside to levels consistent with price stability, even as growth revives.

“The slower pace of recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply-chain disruptions associated with the tragic events in Japan,” the Fed said in a statement at the conclusion of a two-day meeting.

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