It is not known if Ben Bernanke is superstitious or not, or believe in the sayings. But undoubtedly want that third time lucky. Because the institution he presides, the Federal Reserve (Fed), re-launch their printers. For the third time since the crisis began, back in 2007, the U.S. central bank will create more dollars.A third round of quantitative stimulus-QE3, naming successor to its predecessors QE1 and QE2, which this time will focus on acquiring mortgage Debt with the intention of supporting this sector and, by extension, to revive the housing sector. Of course, unlike previous programs, Bernanke said no QE3 total ammunition. Reported that 40,000 million dollars devoted a month to purchase these titles, but without specifying how long.
And there was more, because the Fed pledged to keep interest rates between 0 and 0.25% for longer: if until now had agreed to leave at that level-the lowest ever-to late 2014, reported that it will not touch until mid 2015. Also, keep the rest of the strategies already had in place: first, Bernanke will continue dancing the Twist-buying long-term government debt with money from the sale of short-term debt-to late 2012, and by other, continue to acquire more mortgage debt with money from the maturity of the securities already in portfolio.All this, taken together, lead to the portfolio of long-term debt of the entity fatter at a rate of 85,000 million additional month until the end of 2012.
These measures, all with historical dimensions, show the degree of concern felt by members of the Federal Open Market Committee (FOMC), the body responsible for defining the Fed's monetary policy in the U.S.. Well, all but one, Jeffrey Lacker, who remained in their line-has been the voice of dissent in all meetings of 2012 - and opposed the adoption of new stimuli. Other initiatives supported itself. They closed ranks around their president, who had already expressed its intention to take action to bolster the recovery if the situation required it.
And in his view the economy can not wait any longer. You need vitamins, because it remains anemic. Little or no care that its decision might be interpreted in key electoral or the Fed may be criticized by Democrats or Republicans, facing the final stretch of the campaign. That's not the caudrilátero Bernanke, his is trying to strengthen the recovery.
"Economic activity has continued to grow at a moderate pace in recent months," admitted the institution to start. But what hurts is employment. The unemployment rate remains too high by North American standards. Although down from 8.3 in August to 8.1%, still well above its average of the past 50 years, located at 6.1%. "Growth in employment has been slow and the unemployment rate remains high, "he admitted.
Is the job!
Paved the way, happened to justify their actions in more detail and always with one goal in mind: jobs. "The weak labor market should concern every American," Bernanke claimed in the press conference after the meeting. And pledged to do whatever is necessary to reduce unemployment to 6%, in line with the objective of long-term unemployment which has the Fed
For the moment, and QE3 this objective. "The FOMC is concerned that, without more stimulus, economic growth may not be strong enough to generate a substantial improvement in labor market conditions," defended. And that was spent. A stimulating."[The debt purchases] should push down long-term interest, support mortgage markets and help generate smoother financial conditions," he confessed.
What if it is not enough to QE3? Well if need be more, especially, again, if the labor market does not resurrect. "If the labor market perspective does not improve substantially, the Committee will continue to buy mortgage debt, undertake additional acquisitions and use the rest of its tools as appropriate to achieve this objective in a context of price stability," proclaimed their commitment to stay even clearer.
Best in 2013
Endorsing his views, new economic forecasts that the Fed announced just pick an improvement in the labor market in the coming months. For this year, maintains, and in June, that unemployment will move between 8 and 8.2%. In 2013, predicts that unemployment will range between 7.6 and 7.9%, similar to figures three months ago, comprised between 7.5 and 8%.
And that the U.S. central bank anticipates a strengthening of the recovery during 2013.Over the next year, the economy could grow between 2.5 and 3%, up from the previous forecast, located between 2.2 and 2.8%. before, yes, growth will be lower in 2012 .Between 1.7 and 2%, when in June saw between 1.9 and 2.4%.
And there was more, because the Fed pledged to keep interest rates between 0 and 0.25% for longer: if until now had agreed to leave at that level-the lowest ever-to late 2014, reported that it will not touch until mid 2015. Also, keep the rest of the strategies already had in place: first, Bernanke will continue dancing the Twist-buying long-term government debt with money from the sale of short-term debt-to late 2012, and by other, continue to acquire more mortgage debt with money from the maturity of the securities already in portfolio.All this, taken together, lead to the portfolio of long-term debt of the entity fatter at a rate of 85,000 million additional month until the end of 2012.
These measures, all with historical dimensions, show the degree of concern felt by members of the Federal Open Market Committee (FOMC), the body responsible for defining the Fed's monetary policy in the U.S.. Well, all but one, Jeffrey Lacker, who remained in their line-has been the voice of dissent in all meetings of 2012 - and opposed the adoption of new stimuli. Other initiatives supported itself. They closed ranks around their president, who had already expressed its intention to take action to bolster the recovery if the situation required it.
And in his view the economy can not wait any longer. You need vitamins, because it remains anemic. Little or no care that its decision might be interpreted in key electoral or the Fed may be criticized by Democrats or Republicans, facing the final stretch of the campaign. That's not the caudrilátero Bernanke, his is trying to strengthen the recovery.
"Economic activity has continued to grow at a moderate pace in recent months," admitted the institution to start. But what hurts is employment. The unemployment rate remains too high by North American standards. Although down from 8.3 in August to 8.1%, still well above its average of the past 50 years, located at 6.1%. "Growth in employment has been slow and the unemployment rate remains high, "he admitted.
Is the job!
Paved the way, happened to justify their actions in more detail and always with one goal in mind: jobs. "The weak labor market should concern every American," Bernanke claimed in the press conference after the meeting. And pledged to do whatever is necessary to reduce unemployment to 6%, in line with the objective of long-term unemployment which has the Fed
For the moment, and QE3 this objective. "The FOMC is concerned that, without more stimulus, economic growth may not be strong enough to generate a substantial improvement in labor market conditions," defended. And that was spent. A stimulating."[The debt purchases] should push down long-term interest, support mortgage markets and help generate smoother financial conditions," he confessed.
What if it is not enough to QE3? Well if need be more, especially, again, if the labor market does not resurrect. "If the labor market perspective does not improve substantially, the Committee will continue to buy mortgage debt, undertake additional acquisitions and use the rest of its tools as appropriate to achieve this objective in a context of price stability," proclaimed their commitment to stay even clearer.
Best in 2013
Endorsing his views, new economic forecasts that the Fed announced just pick an improvement in the labor market in the coming months. For this year, maintains, and in June, that unemployment will move between 8 and 8.2%. In 2013, predicts that unemployment will range between 7.6 and 7.9%, similar to figures three months ago, comprised between 7.5 and 8%.
And that the U.S. central bank anticipates a strengthening of the recovery during 2013.Over the next year, the economy could grow between 2.5 and 3%, up from the previous forecast, located between 2.2 and 2.8%. before, yes, growth will be lower in 2012 .Between 1.7 and 2%, when in June saw between 1.9 and 2.4%.
