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Fed keeps stimulus in place as U.S. economy "paused"

The United States central bank forecast, the country's employment market will continue to improve the relatively slow, and once again promised to buy securities, until the employment prospect "increase".
"In the growth of the economic activity in recent months stopped, largely because the weather and the interrupt and other temporary factors," the fed a two-day meeting said.
In a report on Wednesday, the U.S. economy unexpectedly contraction, the fourth quarter slowdown in inventory investment, government spending fell sharply. Analysts said, superstorm late October to the east coast of the United States, a large sand, with a bang, but also disturbed the recovery.
The federal reserve has been keep overnight interest rates close to zero, since since the end of 2008, through the purchase of securities, the purpose of which is to long-term borrowing costs push low about $3 trillion, its balance sheet three times.
From 2007 to 2009 years of economic recession recovery although stubbornly tepid, the fed's policy group says it will continue to stay in orbit, continue to help from the confidence of the monetary policy.
"The commission is expected, the appropriate loose policy, economic growth will continue to moderate pace to judge committee in accordance with the double task level, the unemployment rate will gradually decline," it said.
This is cautious optimism, the fed December have sounded, when it was emphasized that it "concern" economic won't provide more powerful hire, if there is no policy support.
Tilt "policy in accordance with the change, according to jpmorgan chase economist Michael cost raleigh in to the customer's report wrote:" in essence voice more sure.
A report on Friday is expected to show that the United States unemployment remains at 7.8%, for the third consecutive month in January. The fed reiterated that will keep overnight interest rates close to zero, until unemployment reached 6.5%, as long as the inflation threat to more than 2.5%.
"This is an information policy is stable, because her to go," said Julia calif, Paris, France bank in New York's economists.
Big, statement was widely anticipated, there have been news says the United States shares, government bonds and the dollar change is not big.
Also looking for improving the Labour market
The fed pointed out that consumer spending and business investment and housing department took a further improvement. It also admitted that the financial situation in Europe calm, bypassing the December warned that these constitute an obvious threat, although it said downside risks remain.
The federal reserve bank of Kansas city President esther George, in her first policy vote, opposition to the federal reserve for stimulus, pick up the mantle left Richmond federal reserve bank chief raquel, last year in each policy meeting opposition.
The fed's bond purchase plan, it currently $40 billion to buy mortgage-backed bonds and long-term national debt of $45 billion a month, is the central bank's unprecedented efforts to stimulate a stronger recovery and drive to reduce part of the unemployment rate.
But most analysts expected the prospect of labor market performance significantly improved, the fed would like to see this year, keep it track further bonds to buy.
Even so, the fed's December meeting minutes, published earlier this month, the results show that some policy makers think plan should stop to 2013 years.
Some fed officials have expressed concern, can offset any benefits of bonds to buy installation cost.
Two potential threat, policy makers think is encourages the risk of asset price bubbles, and may damage national debt and mortgage-backed bonds market operation. Some people worry that the fed may incur losses, when it eventually sell bonds, to shrink their balance sheets, which can cause serious political consequences, the independent.
Republicans criticize the fed has always insisted on and powerful house financial services committee chairman, representative jeb Hensarling, issued a statement to trouble problems last Wednesday decided to.



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