Monday, April 25, 2011

Ignore the economic downturn remains clear that the Federal Reserve cut interest rates no longer.

Fed officials have recently seemed to have reached a tacit agreement, clearly expressed in external speech can not stand further interest rate cuts, which the central bank interest rate policy over the past liked to play with words rather than on direct that the attitude of different. .<P> (Http://finance.) Fed Governor Warsh (Kevin Warsh) last week, announced that the economy will weaken further if the Fed should cut interest rates again the voice said no. .Fed Vice Chairman Donald Kohn (Donald Kohn) and Yellen, president of San Francisco Federal Branch (Janet Yellen) also said that the existing level of interest rates "appropriate." .</ P> <P> they are in the clear Fed Chairman Ben Bernanke and his colleagues released a message last month that the Fed two years of the most radical rate cut cycle may be close to the end. .This wave of rate cut cycle started in September last year after spending several months in the U.S. economy began to show results. .</ P> <P style=MARGIN: 0px> but that does not suffer from real estate, credit and financial market crisis hit the U.S. economy from the bottom to Tough Questions. .By business and labor market situation and short-term economic outlook worsening pessimism increased impact, economic council by the April consumer confidence index of 62.8 (as amended) fell to 57.2 in May, the highest in October 1992 (54.6 .) has been low. .This means that consumers will continue to cut spending to cope with economic slowdown. .</ P> <P style=MARGIN: 0px> </ P> <P style=MARGIN: 0px> Nevertheless, the Fed still want to cut interest rates under its drastic tax cuts coupled with government programs, be available in the next .half of the revitalization of the U.S. economy. .</ P> <P> energy, food and other commodity prices continued to rise, fueling inflation and slow economic concerns warming, and further interest rate cuts may make the situation worse. .In fact, the Fed last cut interest rates in April to say "some reluctance", when two members for fear of the Fed decision to cut interest rates against inflation. .</ P> <P> Many economists believe that the next Fed meeting on June 24-25 in decision-making meetings, to keep interest rates unchanged at four-year low of 2 PCT. .</ P> <P> Cohen said, to keep interest rates at this level, should help improve the economy and employment and reduce inflation. .Aquino Golden Gate University School of Business Dean Connelly said, the Fed cut interest rates again to promote its position do not want to be wise. .</ P>.

No comments:

Post a Comment