Arab Today, arab today fed expected to hold fire despite weak us growth
Last Updated : GMT 00:57:03
Arab Today, arab today
Arab Today, arab today

Fed expected to hold fire despite weak US growth

Arab Today, arab today

Arab Today, arab today Fed expected to hold fire despite weak US growth

Washington - AFP

The Federal Reserve\'s top policy makers are expected to shy away from taking new economic stimulus measures when they meet Tuesday and Wednesday, instead waiting until the economic picture becomes clearer. The interest rate-setting Federal Open Market Committee will gather for a two-day meeting in Washington under the shadow of sub-par growth in the world\'s largest economy. \"We do not expect that the Fed will announce any additional action in the upcoming meeting as the ideological division among members remains strong,\" said analysts at Spanish bank BBVA, reflecting a growing consensus on Wall Street. With few tools left in the box and the outlook murky, the Fed has been reluctant to embark on a third round of asset purchases, or quantitative easing, dubbed QE3. Instead Chairman Ben Bernanke and his colleagues have preferred to wait and see whether a recent slowdown has been a blip, or a harbinger of worse times ahead. \"We expect that this next meeting will involve serious discussions regarding QE3,\" said BBVA, \"however, it is more likely that the Fed will announce QE3 in the September meeting.\" With the economy periodically lurching back toward recession, the bank has facing a difficult task in calibrating its response. Last week there was yet more ambiguous economic evidence, when the Commerce Department reported growth in the second quarter was just 1.5 percent. While that is far from stellar, it was still better than expected. The Commerce Department also published revisions of the last few years of growth data, which showed the recession was more shallow and the recovery patchier than first thought. Growth in the last quarter of 2011 was revised up significantly, from 3.0 percent to 4.1 percent. Stalking the debate are doubts that any fresh Fed action would make a meaningful difference to the US economy. \"Central bankers have taken the ball about as far down the gridiron as they can,\" said Tony Crescenzi of bonds giant Pimco. \"The Fed could implement another round of asset purchases, cap Treasury rates, cut the interest rate it pays banks on excess reserves, extend further its conditional promise to keep rates low, or perhaps consider some form of credit easing,\" he pointed out. \"If the Fed did any of these it would mark another courageous effort by... Fed Chairman Ben Bernanke, but it will never get the ball into the end zone.\" And waiting until September to act could also pose political problems for the Fed, which jealously guards its independence. Republicans -- whose chances of regaining the White House depend in part on the poor state of the economy -- recently pressed Bernanke to foreswear any further stimulus. Bernanke refused to tie his hands, but if he acts in September, just weeks before the November 6 elections, the backlash is likely to be fierce. Yet with fresh jobs data due on Friday and expected to show that unemployment remains painfully high, Bernanke and his colleagues may yet be forced into a corner.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed expected to hold fire despite weak us growth Arab Today, arab today fed expected to hold fire despite weak us growth

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 11:55 2017 Wednesday ,29 March

Need ‘gymspiration?’ The top fun fitness bloggers

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday