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The Federal Reserve Board has promised to keep interest rates at zero until 2013-- an admission that the economy is not expected to rebound for two years-- until the next President is in the White House. This policy step indicates the Fed does not believe the economy will recover either this year or next year. Never before has the central bank made such a policy declaration for as long a period as two years.
European Central Bank Governing Council member Ewald Nowotny does not expect the U.S. economy to enter a double-dip recession and is more concerned about fast-growing developing markets, he told a newspaper.