U.s. Central bank: further easing of monetary policy conceivable

u.s. central bank: further easing of monetary policy conceivable

But there is not yet a sufficient basis for it. Economic growth in the USA is moderate, and the short-term economic outlook has even been revised slightly upward. Overall, however, there are "significant downside risks".

Shortly before bernanke’s quarterly press conference, the fed had confirmed that it would continue to support the sluggish u.S. Economy with its de facto zero interest rate policy until the end of 2014. The open market committee wants the overnight rate to remain at the "extraordinarily low" level of between zero and 0.25 percent.

For this year, the fed has raised its growth forecast for the u.S. Slightly to between 2.4 and 2.9 percent. For 2013 and 2014, on the other hand, she corrected her outlook a little downward. It was disappointing how slow the recovery was after the recession of 2008 and 2009, bernanke said. The labor market is only gradually improving. The unemployment rate is currently too high at around eight percent and is falling unusually slowly.

Experts have long suspected that the fed could once again fire up the bond press this year and launch a bond-buying program. Since the height of the financial crisis in 2008, bernanke’s watchdogs have already implemented two rounds of quantitative easing because the options for interest rate policy have been exhausted. Okonomen show themselves however inconclusive whether a third round can still unfold rough effect.

Inflation does not currently stand in the way of further monetary easing, according to the fed. Although the inflation rate has increased slightly recently, this is mainly due to rising energy prices. According to bernanke, the fed does not expect the two percent target to be exceeded.

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