Advertisement

HindustanTimes Sat,23 Aug 2014

Cash won't flow forever: Fed signals end of stimulus

Reuters  London, June 20, 2013
First Published: 23:00 IST(20/6/2013) | Last Updated: 02:36 IST(21/6/2013)

Federal Reserve Chairman Ben Bernanke's confirmation that the central bank is slowly pulling back on its $85 billion in monthly asset purchases confirmed investor fears, sending stocks and bonds sharply lower, and pushing benchmark Treasury yields to a 15-month high.

Advertisement

Bernanke stressed that even a slower pace of bond buying would be adding support to the economy, and that any decision to begin removing stimulus was still a long ways off. Any eventual increases in interest rates would also be gradual, he added.

The Fed expects moderate growth to lead to a further healing in the job market as headwinds facing the economy ease, Bernanke said. He also said policymakers expect inflation to move back up toward their long-term 2% goal, and dismissed recent low readings on consumer prices as due in part to temporary factors.

http://www.hindustantimes.com/Images/Popup/2013/6/21_06_13-biz-07.jpg

He said the jobless rate should be down to around 7% from its current 7.6% by the time bond purchases are halted mid-way through next year.


Advertisement
more from Business

Sebi clamps down on PACL’s Rs 50K croremoney-pooling scheme

In its biggest ever crackdown, capital market regulator Sebi on Friday ordered the closure of a Rs 50,000-crore collective investment scheme run by Pearls Agrotech Corporation Ltd and directed the company to refund investors’ money within three months.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved