Friday, September 14, 2012

Federal Reserve announces QE3


 
Ben S. Bernanke (AFP Photo / Brendan Smialowski)

Source: Russia Today
http://rt.com/usa/news/federal-reserve-qe3-effort-079/

The Federal Reserve announced Thursday that they will spent $40 billion a month on bond purchases in an effort to kick-start the US economy, the Associated Press reports.

Federal Reserve Chairman Ben Bernanke is expected to make a public address later today to discuss the results of this week’s Federal Open Market Committee (FOMC) meeting, but in the FOMC confirms that it will keep interest rates "exceptionally low" at least through mid-2015, AP confirms, with the Fed failing to reveal and an end date to the effort at this time.

"If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability," the Fed reports in a Thursday afternoon statement. The decision to issue the announcement was approved on an 11-1 vote.

Economists had predicted that the central bank would unveil plans for a third-round of a quantitative easing, or QE3, but the Fed has only hinted at plans for a bond purchasing program until now.

Last week, Goldman Sachs said, “With today’s August employment report showing a nonfarm payroll gain of 96,000 and an unemployment rate of 8.1% because of a drop in the participation rate, we expect a return to unsterilized and probably open-ended asset purchases at the September 12-13 FOMC meeting.”

Some critics, including noted investor Jim Rogers, have attested that previous rounds of quantitative easing did little to aid the faltering economy, and that a third attempt may be met with the same respojnse.

"QE1 failed, QE2 failed, so I'm not so sure they would announce QE3, because they'll look like fools again," Rogers told Yahoo this week.

Less than one month ago, Bernanke warned that QE3 was becoming more and more likely, saying, “Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

 

2 comments:

  1. I hardlу comment, however i did sοme seаrching аnd wound up here "Federal Reserve announces QE3".
    Anԁ I aсtuаlly do have 2 questions fοr уou if
    yοu don't mind. Could it be only me or does it seem like a few of these remarks look as if they are left by brain dead people? :-P And, if you are writing on other sites, I would like to follow anything fresh you have to post. Would you make a list of all of all your communal pages like your Facebook page, twitter feed, or linkedin profile?
    My web page: samir barai insider trading

    ReplyDelete
  2. There are links in the side bar where I re-post news from. Also you can find me at World United Music and stewart brennan art

    ReplyDelete

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russia Today (Live)

World News 2017

South Front Military Review 2017

Syria - News 2017

US News 2017

The Russian Perspective

Debate – Global Issues 2017

Current Affairs - Important Interviews – 2017

Important Information 2016 - 2017

Yemen News 2017

Turkey News 2017

Ukraine News 2016 - 2017

Palestine & Israeli Crime 2017

Iraq News 2017

Iran News 2016 - 2017

Important Documentaries

Viewpoint, Discussion & Opinion - 2017

Abby Martin – Empire Files

Global Economic News 2017

Egypt News 2016 - 2017

Libya News 2016 - 2017

Bahrain News 2016 - 2017

Sheik Imran Hosein - Islamic Eschatology

George Galloway – Comment & Opinion

English FA Cup 2016 – 2017

New Age Weather

Space News

Music for the Revolutionary Mind

Global Revolution LIVE!

Watch live streaming video from globalrevolution at livestream.com

Japan’s 3 Nuclear Meltdowns STILL ongoing (News Censored)