Fed keeps. The Federal Reserve keeps hold on to both interest rate and extent of the quantitative easing. Markets react positively.
Magnus A. Koren
Updated: 12/14/2010 at. 9:07 p.m.
Posted: 14/12/2010 at. 8:24 p.m.
The outcome of the last monetary policy meeting of the American Federal
Reserve was offenliggjort Tuesday at 2015 Norwegian time.
Committee, the official name the Federal Open Market Committee (FOMC),
decided by 10 votes against n to keep key, final fantasy xiv gil, rate unchanged at
historically low range of zero to 0.25 percent.
The decision is expected.
- The economic pick-up continues,Veidekke acquires, but at a pace that has not been
sufficient to reduce unemployment, justifying the central bank.
Besides the interest rate it was a different and very important point on the main
today's agenda: The effects of the second, massive round of
cash injection into the economy, also called, eve online isk, the QE2.
Tuesday the central bank is aware that measures the scale will be 600
billion dollars, and that they will be implemented in the second quarter of 2011.
Injection,Mario shorter time and may return ae, which occurs through the central bank buys bonds to
a value of 600 billion dollars, has been much debated. Critics
feared that the measures will lead to inflation.
- Perhaps the most striking, cheap wow gold, today is how easily meet central bank
take the criticism of the planned quantitative easing, "said Chief Economist
ystein Drum of DnB Nor Markets to E24 on Tuesday night.
He also does not think there will be no interest rate increase in the U.S. until well into
Read also: What is the QE2 and what's the point
Governor Ben Bernanke said earlier that the central bank has an open
attitude toward the actions and that one is willing to consider adjustments. It is
little similar to this after Tuesday's meeting of the central bank.
- We assume that the Fed will run on as planned in the fuel injection
its says Drum.
Stock markets up
While the dollar remained unchanged against the euro, Wall Street reacted weakly positive
the signals from the central bank:
Dow Jones index on Tuesday night up 0.6 percent, while the broader S & P
500 index rises 0.3 percent.
Stock markets on Wall Street is now at its highest level in more than two years. The
has thus taken back more than what they lost after the big bank Lehman
Brothers collapsed in October 2008. The rise in the fall has been partly based
on the expectation of the massive injection.
Meanwhile, unemployment in the country remains high – in November, lay it on
9.8 per cent.
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