Federal Open Market Committee, a policy rate meeting of the United States (FOMC) is completed, the maintenance of (from 0 to 0.25%) of the current policy rate was decided as expected.
I quit the program Omotte the end of this month as planned additional quantitative easing policy (QE2).
I lowered the GDP growth forecast for the United States this year and next in this release of the FRB:
New 2.7% 2011 – 2.9% – 3.1% previous 3.3%
New 3.3% 2012 – 3.7% from 3.5% to the old 4.2%
In addition, as expected of core inflation, excluding food and energy to:
New 1.5% 2011 – 1.8% – 1.3% previous 1.6%
I am raising the.
For the unemployment rate to:
New 8.6% 2011 – 8.9% – 8.4% previous 8.7%
New 7.8% 2012 – 8.2% – 7.6% previous 7.9%
I have a.
What reporters Yomiuri Shimbun you feel now to criticism of the Bank of Japan “Ten years ago Ben Bernanke Federal Reserve Board to (FRB) Chairman at a press conference after the FOMC?I was showered question to the effect that “.(Positive comments has been with “It was a good question,” the blog of the Wall Street Journal in this =)
Bernanke replied that it “was well understood by the Bank of Japan is struggling When I become in a position of central bank governor now.”.
But do not forget that you add the following words.
It may not be possible and to be able to do the “Central Bank.That the prevention of deflation in my opinion it is a phenomenon that can be prevented by all means the central bank if the tackle in motivation.In fact, we were able to break away from it completely now thanks to you did when QE2 you feel the risk of deflation last year ”
This is a remark to Ru dis the Bank of Japan in a roundabout way.
In a sense, the success of deflation avoidance is the only point that can claim credit for his Bernanke proudly today.
It may be said that the question of the Yomiuri Shimbun became pump priming that could allow a victory lap to Bernanke to tailor-made in that sense.
It is the Bernanke but deflation could be avoided, but certainly, there is a watch you’ve been Boxed-in completely in terms of other.
Because it has been the increase in employment has been slow despite QE2, the economy itself is because it visible signs of decline and Cho~tsu to come here.
It is not possible to trigger the QE3 On the other hand inflation rate is close to the target of FRB (around 2%).
Interest rates (because it is already zero) can not be lowered more
Can not be activated during QE3
Currently, to remain facing much securities such that FRB is in stock
It means that, I mean that in a state in which movement can not be made at all.
Economy is not accelerating in the second half of this year thinking as Bernanke now, I will have a pretty hard thing.