U.S. FEDERAL RESERVE BOARD TO REVIEW ITS MONETARY RECOVERY
Will complement the Federal Reserve (central) American meeting yesterday to consider monetary policy was the subject of intense anticipation in the markets of the world, The meeting was intended to look at whether or not the time has come to reduce the special cash assistance provided by the bank to the economy.
It was anticipated to announce the monetary policy committee of the Board of the Federal Reserve, which began its work yesterday, its decision at a time when advanced, as well as the expectations of the new economic.
and anticipation traders in financial markets last press conference of the Chairman of the Board Ben Bernanke this year, which marks the centennial anniversary of the founding of the Council. And will be chaired by Bernanke also a meeting of the Monetary Policy Committee of the Reserve Federal in late January (January) before handing over his post to Janet Yellen successor but set still requires Senate confirmation.
, and the Federal Reserve that keeps interest rates the main near zero since the end of 2008, the Order Every month since 14 months worth of $ 85 billion treasury bonds and shares linked to mortgages. The aim of this extraordinary measures to keep interest rates at a low level to support growth.
During their last meeting in late October (October), only the members of the Monetary Policy Committee to expect a change in the orientation «in the coming months,» according to the minutes of the meeting. However, analysts are divided to a large extent to the point of knowing whether the Federal Reserve will begin to abandon its operations to pump liquidity in the market, but it seems that a slim majority believes that the institution Sttrat more time.
indicates an investigation by the research team at the Foundation «Nomura» and included about a hundred of customers to investors who expect a decrease incentives for theFederal Reserve, increasing by 37 percent for those who expect a cut in January or March. A poll last conducted «Bank of America – Merrill Lynch» included responsible for managing the funds, that only 11 percent expect to start the Federal Reserve retreat now.
were issued for the U.S. economy signals improved continuously, even if growth is still «modest to moderate» according to recent report of the U.S. central bank, known as «Beige Book». The unemployment rate fell in November (November) to its lowest level in five years (7 percent), while GDP advanced 3.6 percent pace of annual in the third quarter, which means acceleration and clear compared to the previous three months.
and uncertainties surrounding the budget in United States on the way to the solution in part with an agreement in Congress is the specter of a new government paralysis. As the only black point relates to the survival of low inflation below the target set by the FederalReserve at 2 percent. Showed the consumer price index, which was published yesterday that prices did not move in November have not progressed over the years by only 1.2 percent.
For Price Index-linked expenses consumption, which is another measure adopted by theFederal Reserve did not record the rate of inflation only 0.7 percent over 12 months. Said Kim Fraser, an economist with the group «BBVA Research In»: «In these circumstances, we expect to be dominated by concerns regarding inflation in the talks for the Monetary Policy Committee of the Federal Reserve».