Financial Times FT.com

Fed adds to air of optimism over economy

By Tom Braithwaite and Alexandra Ulmer in Washington

Published: August 12 2009 20:24 | Last updated: August 12 2009 23:31

Wednesday’s declaration by the Federal Reserve that the US economy appeared to be “levelling out” came amid growing confidence in US markets that the country is heading for recovery.

House prices are falling and jobs are still being lost but US equities closed solidly higher after a Fed statement that sparked neither panic nor jubilation.

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