Arab Today, arab today fed ponders next move amid economic distress signs
Last Updated : GMT 08:56:04
Arab Today, arab today
Arab Today, arab today

Fed ponders next move amid economic distress signs

Arab Today, arab today

Arab Today, arab today Fed ponders next move amid economic distress signs

Washington - AFP

US Federal Reserve policymakers met amid signs of weakness in the world\'s biggest economy that are clouding prospects for withdrawal from a massive stimulus program. The central bank\'s Federal Open Market Committee (FOMC) was debating an eventual exit strategy from the support it has extended since the 2008 financial meltdown. The Fed will have pumped more than $2.3 trillion into the economy between late 2008 and June 30 by buying securities on the markets. Financial markets keenly awaited the conclusion of the two-day FOMC meeting Wednesday, hoping to parse its policy statement and a news conference with Fed Chairman Ben Bernanke for clues on the direction of interest rates. \"Ben Bernanke will face harder questions on Wednesday than he did at his first press conference on April 27, with growth signals coming in weak, inflation signals uncomfortably high, and financial markets still worried about the eurozone sovereign debt crisis,\" said IHS Global Insight analysts Patrick Newport and Nigel Gault. A change in near-zero interest rates was essentially ruled out. Since December 2008, the Fed has kept its key target interest rate between zero and 0.25 percent in an effort to boost economic growth, and has promised repeatedly to leave it there for \"an extended period.\" Most experts anticipate the FOMC will signal that the Fed\'s $600 billion asset purchase program, or quantitative easing, dubbed QE2, will end as scheduled by June 30, and no other QE program will be announced. \"The economy has not deteriorated enough to require QE3 and for this reason we believe that the losses in the greenback could be limited as the end of quantitative easing boosts the dollar,\" said Kathy Lien at GFT. The Fed was also expected to confirm it will continue to reinvest principal payments from mortgage holdings into longer-term Treasury securities. Eventually, it will have to withdraw the record stimulus to prevent a potential inflation spiral that would violate its mandate of maintaining price stability. The only news on the US economic calendar Tuesday highlighted the challenges facing policymakers to boost sustainable growth. Sales of previously owned US homes fell 3.80 percent in May to a six-month low amid persistent financing problems in the depressed sector, the National Association of Realtors said. The weak housing sector has been a \"big reason\" for the sluggish US economic recovery, Bernanke said in early June. \"The recovery will have to proceed without the help of housing which is going to make it more difficult to really ramp up growth for any extended period of time,\" said Joel Naroff of Naroff Economic Advisors. \"The Fed understands that job growth will not be robust, which is just another reason that Mr Bernanke wants to keep the pedal to the metal as long as possible.\" Nearly two years after the recession ended, economic growth, as Bernanke said recently, is \"desperately slow.\" First-quarter growth decelerated to a weak 1.8 percent annual rate and economists have been lowering their second-quarter forecasts as a string of weak economic indicators arrives. \"Since the FOMC last met on 26-27 April, the unemployment rate has bumped up from 8.8 percent in March to 9.1 percent in May, the S&P 500 index has declined more than 5.0 percent, and consensus growth forecasts for Q2 (second quarter) have been revised down,\" said Nomura economists. The Fed also will publish updated estimates on economic growth, unemployment and inflation Wednesday.

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 ponders next move amid economic distress signs Arab Today, arab today fed ponders next move amid economic distress signs

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
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