Obama’s $825bn stimulus package approved
President Barack Obama’s $819 billion (£572 billion) economic stimulus package has been approved by the US House of Representatives.
The President hopes to sign the package into law in February and said the package includes $275 billion in tax cuts, including a credit worth $500 dollars for each worker and $1,000 for couples.
However, the majority of the package focuses on road and bridge repair, increased unemployment benefits, investment in new technology, renewable energy programmes, health care and renovations to thousands of schools.
In related news, the US Federal Reserve opted to keep interest rates at a range of zero to 0.25% yesterday.
However, the Fed has vowed to take whatever action necessary to sustain economic growth, possibly buying long-term government debt.
It has slashed interest rates from 5.25% since September 2007 and injected billions of dollars into the economy.
As with many other economies, the US is grappling with the worst recession in over 60 years.
Yesterday, the International Monetary Fund (IMF) revised its forecast for world growth this year to 0.5% – the lowest since World War II.