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Fed officials on the economic view differences Bernanke important source of demand

Release Date:2012-05-05  Hits:142
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"At present, debt and consumer point of view, the situation than before the crisis is still a lot of difference," Bernanke said second lecture to students at George Washington University. "We lack a source of demand to sustain economic growth.



Instead, Bernanke appears to be more cautious, saying that U.S. consumer spending is still too weak, it is difficult to ensure economic growth of a healthy pace.



In addition, one of the most moderate officials in the Federal Reserve Federal Reserve hinted of future interest rate policy wording, and concluded that this is effective in reducing the cost of borrowing.



Fisher said on Fox Business News, growth "slowly than we anticipated," but the U.S. economic expansion is fast enough, does not require the central bank to further help.



"Our real problem is that employment growth and economic prosperity," he said. "We need better fiscal policy to complement the Fed's policy because it does not achieve the desired results.



"It seems that the Federal Open Market Committee (FOMC) within the scope of its power by committing to sustained reductions in short-term interest rates to adjust beyond the reach of the long-term interest rates, it is possible to do.



Bernanke this week to go to Congress to testify, also delivered a speech to students, frequently appears in the people's attention, but he was not the major concern of investors, namely, to further relax monetary policy outlook, given additional clues.



According to the data since the mid-1990s, the U.S. Federal Reserve Bank of Chicago President Evans and the other three economists found that the market will indeed listen to the remarks of the Federal Reserve. The study results Thursday in a meeting of the Brookings Institution.



Fisher said he was not worried about inflation, expected inflation rate will drop to around 2% of the Federal Reserve target.



But in the opinion of analysts and investors in recent months, the U.S. manufacturing sector expansion and job market and property market improved to enhance the hope of recovery.



The traders have been betting on the Fed to start raising rates in July 2013 at the earliest.



Analysts now believe that the Fed is unlikely to purchase debt in the third round of plans or quantitative easing by the recent economic environment to improve, especially in the job market.



But he speak out against the further relaxation of monetary policy, to show the challenges facing Bernanke, who is seeking to reach agreement in the future policy to the face of poor economic growth and high unemployment. Fisher this year is not the policy of voting members, but he also attended the Fed's regular policy setting meeting.



However, Fed officials have made it clear that, up to 8.3% unemployment rate is still too high, it is difficult to make people feel relieved; and European financial crisis, the risk of proliferation has reduced, but did not fully subside.



Evans' study support the Fed's decision earlier this year, began issuing the decision-makers on the interest rate forecast, and that the U.S. Federal Open Market Committee (FOMC) is expected to at least maintain near-zero interest rates to the end of 2014.



Fed reiterated last week, expected to keep interest rates near zero until the end of 2014 to help the faltering economic recovery. Fisher's views in the minority among the Fed.


Dallas Federal Reserve Bank President Richard Fisher said on Thursday that the economy improves, the U.S. Federal Reserve Board (Fed, the Fed) Chairman Ben Bernanke is concerned about the weak source, showing the divergent views of the Federal Reserve within.



"We do not support in this case, further quantitative easing World Steel Pipe News , because there are a lot of idle capital," the News provided by written records show that he says. "We do not need more monetary policy incentivesWorld Steel Pipe .



In response to several generations since the most serious economic recession, the Fed under Bernanke's leadership, the short-term borrowing costs down to near zero, and commitment will be maintained until at least the end of 2014. Meanwhile, the Fed through the purchase of a $ 2.3 trillion (trillion) public debt and mortgage-backed bonds (MBS), significantly expanding the size of its balance sheet.



The fourth quarter of 2011 the economy expanded at an annualized rate of growth of 3% this year, the slowdown in first-quarter economic growth rate expected to slightly less than 2%.

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