a new round of stimulus ready to come out
the QE3 introduced still variable
As a result of a compromise after the U.S. government and Congress World Steel Pipe News , both parties in Congress had just set up a 12-member special committee responsible for the supervision and management over the next decade the United States at least $ red $ 2.1 trillion task. The Administration has agreed to $ red $ 917 billion, in the first phase of the Special Committee will be made before the end of November and then cut a deficit of $ 1.5 trillion proposal.
Barclays Capital is released this week reported that the current inflation expectations are too high, the Fed is difficult to start QE3. Political pressure may also be a constraint factor of the Fed. Has joined the next year's presidential election candidates are contesting Republican Perry, 16, said Fed Chairman Ben Bernanke before the election to increase the stimulus and printing money will be treated as a "betrayal". Critics argue that the QE3 the practical effect may be very limited, if the Fed to do so might just be Obama fight for re-election to create a better economic environment.
the same on the 16th, the U.S. government also announced another stimulus package aimed at small businesses. The White House announced the availability of state-level small business credit programs to promote economic growth, helping to create jobs World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor . The program covers 11 states, including Alabama and Florida, and Washington, DC, a total of $ 360 million.
some people speculated that Bernanke may be the earliest hint of a more relaxed monetary policy in Jackson Hole Central Bank at the annual meeting on the 26th of this month issued. Fed Atlanta Regional Bank President Lockhart said earlier this week, if the economy continues to slow down, the authorities may buy more government bonds or to adjust their portfolios. If you require additional action, you can guarantee is that the authorities would not be without "bullets", he said.
but conversely, if the economic growth do not increase, even a bad situation into recession, the deficit reduction of any of the U.S. also find it difficult to promote. That rating agencies have put forward a clear warning.
the White House, a senior official said on Tuesday that Obama would also recommend that the Special Committee of the deficit reduction by adjusting the tax code and Social Security programs, the development of a deficit reduction plan, the goal is to slash the budget deficit in the next 10 years, the amount would be much The ultra-The Committee had previously been asked to target to reach $ 1.5 trillion.
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Wall Street Journal cited sources as saying that the Obama proposal is under consideration minus the red Special Committee to support new initiatives designed to stimulate the U.S. economy Tuesday.
However, analysts also pointed out that in the specific context of the Obama administration to launch a massive stimulus measures are not realistic, it will meet strong resistance. Not long ago, Standard & Poor's has just deprived of the highest credit rating in the United States, and the Republicans are still glued to deficit reduction and hold.
three international rating agencies, Fitch announced on the 16th to confirm the highest credit rating of 3A. But the agency also said that before the end of the year will be based on deficit reduction the Special Committee on the outcome of discussions to reassess the rating, the rating of the United States will depend on further deficit reduction plan and the economic situation, if the deficit reduction plan was not carried implementation or severe economic deterioration, which may have led to the reduction in the U.S. rating outlook.
Goldman Sachs also believes that QE3 is still faced with the introduction of a number of variables, such as economic growth may be more robust than expected, inflation upside risks, the Fed internal objections and other factors. (Zhuzhou Liang)
while in the White House is actively considering to stimulate the economy, the U.S. central bank - the Federal Reserve is facing greater pressure. In the stock market crash, the recent outside the Federal Reserve may introduce QE3 of speculation and prediction. However, whether private or official, on QE3 whether the introduction of differences still exist.
face remained at around 9%, high unemployment and weak economic growth, on hand and there remained not so much "ammunition" for U.S. policy makers still have to consider once again bite the bullet "bailout . "
Wall Street investment bank QE3 there are no small controversy. Goldman Sachs on the 9th of this month, the report said, QE3 has become the basic assumptions of The Fed is expected to start a new round of quantitative easing policy, the probability of more than 50% at the end of this year or early next year, because the Fed at a recent meeting on the economic situation interpretation-than-expected more pessimistic. Previously, Thomson Reuters survey shows that of the primary dealers of U.S. Treasury bonds, the majority of Wall Street analysts believe that U.S. introduction of the probability of QE3 has increased recently.
growth is to maintain the rating one of the prerequisites
According to reports, Obama will be in the next few days the contents of the stimulus plan decision, part of which may make a decision on Thursday. Obama recently said that to Congress when it reconvenes in September, he will present a boost the economy, to create a detailed plan for employment and the deficit under control. Obama announced the plan to reduce the deficit of the Joint Special Committee held its first meeting on September 16.
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However, a recent meeting, a number of policy-making officials voted against the view, there are still differences of policy-makers need to increase the intensity of easing within. The Fed St. Louis Regional Bank President James Bullard, 16, said that the low interest rate of the Fed commitment will be maintained until at least mid 2013, but the market this should not be regarded as the Federal Reserve to start a new round of bond purchase program signal.
published Wednesday in a signed article in the British Financial Times website, Lagarde said that developed countries must also be concerned about the medium-term fiscal consolidation plans and short-term initiatives to promote economic growth and employment, the two seemingly contradictory, the actual complementary . Lagarde noted that some countries make excessive adjustment on fiscal policy, short-term initiatives to support economic growth, to maintain fiscal sustainability, increase employment as the goal.
White House to consider new stimulus measures comes amid recent stock market crash, the U.S. economy is once again the signs of the second bottom. The latest data show that the second quarter the economy grew only 1.3 percent in the first quarter grew by only 0.4%. In key employment markets, July's unemployment rate is still as high as 9.1%. Recently many private and semi-official agencies have lowered the forecast for U.S. economic growth, and warned that the risk of second bottom is on the rise.
Frenchman Lagarde
recently served as president of the International Monetary Fund (IMF) warned that the developed economies, despite the consolidation of medium-and long-term financial pressures, but still within a short time to take measures to support economic growth and employment.
Wall Street Journal on Tuesday disclosed that U.S. President Barack Obama is considering a comprehensive deficit reduction program to the newly established Special Committee of the deficit reduction proposal, included in the part of new initiatives designed to stimulate the economy. The same day, the White House also announced to start a credit scheme for small businesses. On the other hand, outside speculation the Fed will start the third round of quantitative easing monetary policy (QE3) has never stopped.
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