The American central bank decided on Wednesday to lower – starting in October – the scale of the asset purchase to the level of $ 15 billion per month. The Fed will be the same now for a month was buying government bonds worth 10 billion USD and bonds secured by mortgages MBS worth $ 5 billion a month.
A similar decision was taken in December 2013., And then in January, March, April, June and July 2014. Fed then gradually reduced program of quantitative easing (QE) from the 85 to 25 billion dollars (each about 10 billion USD).
In a survey conducted by Bloomberg showed that most analysts expected just a reduction in the scale of the asset purchase to the level of $ 15 billion per month.
In the minutes of the June meeting of the Fed signaled that the program of quantitative easing is likely to be completed in October.
The economic situation USA
The Fed found, in a statement issued after the meeting on Wednesday that the American economy is growing at a moderate pace, but still she did not return to full employment.
“Terms to labor market is further improved to some extent. Resources remain in the labor market, however, is still not fully utilized, “- said in a statement.
The Fed noted on Wednesday, as he did in all messages recently that after completion of the program of quantitative easing interest rates in the United States should remain at low levels for “a considerable period of time.”
The American central bank said that inflation remains below target. According to the central bank but there is a chance that the price dynamics in the United States will accelerate.
“The probability that inflation will remain below 2 percent. slightly decreased since the beginning of the year “- written.
Consumer prices in the United States in August fell by 0.2 percent. mdm – US Department of Labor reported Wednesday. Year to year, the CPI increased by 1.7 percent.
Fed raised interest rates projection
The Federal Reserve expects the federal funds rate will be at the end of 2015 r. 1.375 percent. – The Fed announced on Wednesday. The previous forecast assumed the federal funds rate at a level of 1,125 per cent.
The Fed estimated that the potential growth rate of GDP the U.S. is 2-2,3 percent. An earlier forecast in June talked about the value of 2.1-2.3 percent.
In the opinion of the American central bank US GDP will increase in 2015. About 2,6-3 percent. and 2.6-2.9 percent. in 2015.
The unemployment rate has reached the end of next year, 5.4-5.6 percent. and 5,1-5,4 percent. at the end of 2016.
QE – quantitative easing
The Federal Reserve’s asset purchase is the core of the post-crisis policy of the Fed. Its origin dates back to 2008., When he fell founded in 1850. One of the largest in the United States bank offering financial services to businesses of Lehman Brothers.
After I started the global economic crisis, the Federal Reserve slashed interest quickly rates to zero and launched a large-scale bond buying program known as quantitative loosening (Quantitative Easing – QE). This unconventional monetary policy used by central banks to stimulate the economy to grow, the traditional tools (such as. Lowering interest rates) fail.
Low interest rates have encouraged banks to broader lending, and easy access for money for the companies could result in investments, creation of more jobs and higher consumption. All in the name of fighting the crisis.
The next meeting of the Federal Open Market Committee, where decisions are taken on monetary policy in the United States, is scheduled for 28-29 October.
(Onet PAP)
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