Wednesday is the first-ever press conference and that time Ben Bernanke as Federal Reserve chairman who holder because he has some explanations that should be done. For two months, restoration of economic still weak. Fed’s asset-purchase strategy has began last year and America company got a motivation such as borrowing which cheaper and also the stock market has rallied. But economic wider seem still far. Because the price of house will cheaper on February and the unemployment is no change. Beside that the price of oil continue rise, it is very disappointing for consumers. The “QE2” or “quantitative easing” is surname for the $600 billion asset-purchase program. The purpose of this, in order to push ahead the restoration. The New York branch has bought a new U.S. government debt from the private firms, offering up the price of Treasury securities and it is cause reduction of harvest. But in turn it has promoted a interest rates in whole economic, it make a loan cheaper and also can excite some activity especially in business field.
The economic will be loss the main source of endorsement after the program of quantitative easing is finish. The interest rates can fall or down if the request for U.S debt slackens and if the investors pile hide in Treasuries. The economy will deal with exam and it must be stand up by self. John Silvia as chief economist at Wells Fargo said that the Fed is doing in this line, fine line. Whereas the Fed impossible to beginning a third quantitative easing program, because they will many on the Fed committee give comment to waiting. It can not retract until they see the sustainable growing or wait for knowing cause where inflation is going. The stimulus of Fed heard give not that disproportionate boost for the sector of corporate.
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