Arab Today, arab today will bernanke signal new boost to us economy
Last Updated : GMT 09:32:22
Arab Today, arab today
Arab Today, arab today

Will Bernanke signal new boost to US economy

Arab Today, arab today

Arab Today, arab today Will Bernanke signal new boost to US economy

Washington - AFP

Expectant eyes from around the world will be on Ben Bernanke Friday, looking for assurances that the US economy is solid or, if not, that his Federal Reserve is ready to invest more to stimulate growth. Markets have been on edge for weeks over whether the Fed chairman will act on the sluggish economy, making his keynote speech the main event at the Fed's annual international central banking symposium in Jackson Hole, Wyoming this weekend. But with data pointing sideways, and vital determinants of the current economic situation out of his control, few are agreed on just what the taciturn, scholarly US central bank chief should or indeed could do. Bernanke used the Jackson Hole venue the past two years to let markets and policymakers know what is on his mind. In 2010, he moved the markets with his signal of "QE2" -- a second $600 billion quantitative easing program aimed at pushing down long-term interest rates. In 2011, he went in the other direction, telling the White House and Congress not to expect the Fed to do their job, but to take policy actions themselves to strengthen growth. The record of sluggish expansion this year, 2.0 percent growth in the first quarter slowing to 1.7 percent in the second, is evidence of how that message fell flat. But to the policymakers of the Fed's Federal Open Market Committee, led by Bernanke, that is not necessarily enough to merit QE3. The FOMC has to decide whether the data of the past three months, with no clear break between positive and negative signals, demands their policy response. "Many investors believe -- hope -- Bernanke will again use this opportunity to signal new stimulus," said economist Lindsey Piegza at FTN Financial. The signals from the economy are decidedly mixed: job creation, one of Bernanke's central focuses, has been soft, with unemployment still above 8.0 percent. Manufacturing growth, which appeared to be strengthening at the beginning of the year, now seems to have slowed though not stalled. The housing sector, one of the biggest black holes in the economy since 2006, has shown signs of bottoming out, a response in part to the Fed's ultra-low interest rates. Consumer spending is picking up as well, and banks are lending a little bit more, both good signs for the economy. "Growth is neither strong enough for Mr Bernanke... to take any additional easing off the table, but it is hardly weak enough to force him to announce new actions," said Joel Naroff of Naroff Economic Advisors. What is different now is that Europe has slipped back toward recession and China's growth has sharply decelerated. That means that neither can be expected to spend on goods from reinvigorated US industries that have been important to getting the economy from the recession to the modest strength it shows now. Bernanke and the FOMC have consistently maintained that they can adopt more stimulus if the economy needs it. "There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery," Bernanke told a lawmaker last week. But, he added: "The committee will closely monitor incoming information on economic and financial market developments and will provide additional accommodation as needed to promote a stronger economic recovery." Bernanke also needs a strong consensus of the members of the FOMC before undertaking policy changes. The committee, which holds its next policy meeting on September 12-13, remains divided. More are leaning toward stimulus, but some say it is still not merited and could lead to trouble. "Certainly our current expansion is not on the track we would wish," said Dennis Lockhart, head of the Fed's Atlanta district and an FOMC member. But he cautioned: "There is a risk to monetary policy being employed too aggressively and without effect to address economic problems that can be resolved only by fiscal reforms that involve making tough choices about the allocation of public resources." Economists were split on what Bernanke might say and what could come out of the subsequent FOMC meeting. Some doubted any fresh action barring a sharper downturn in Europe, saying that the Fed would likely wait for the European Central Bank to move first. But after seeing the tepid data in Wednesday's Beige Book, the regional economy survey the Fed uses to inform its policy-making, Nigel Gault at IHS Global Insight said the Fed will act. "The outlook is worse than the Federal Reserve's June projections, and as a result we expect to see another round of quantitative easing from the Fed, when it meets in September," he said.

arabstoday
arabstoday

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 will bernanke signal new boost to us economy Arab Today, arab today will bernanke signal new boost to us economy

 



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 will bernanke signal new boost to us economy Arab Today, arab today will bernanke signal new boost to us economy

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new 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