Easy Fed softens fiscal policy punch on economy

WASHINGTON: The Federal Reserve's aggressive easing of monetary policy is proving surprisingly effective at blunting the blow to the U.S. economy from tighter fiscal policy, according to economists who have been scrambling to raise their growth forecasts.

Economists had feared higher taxes and deep government spending cuts would stunt growth in the first quarter, but a string of strong economic data has so far proven them wrong. And they mostly blame the Fed.