No immediate Fed Reserve plan to infuse more cash into economy
Friday, 23 July 2010
From Fazle Rashid
NEW YORK, July 22: US Federal Reserve has no immediate plans to infuse more cash into the economy, Chairman of the Fed Reserve Ben Bernanke said the American economy is recovering at a modest pace but with somewhat weaker outlook. The unemployment rate will remain stagnant at 7.0 per cent until the end of President Obama's first term at the White House which expires in 2012.
Ben Bernanke, presenting Fed's semiannual monetary policy to the Congress yesterday, said: "It would take a significant amount of time' to restore more than 8.5 million jobs lost in the United States in 2008 and 2009 and economic outlook remains unusually uncertain", the New York Times quoted him saying in a story today. He said European debt crisis has become less supportive of economic growth in recent months.
Forecasts are uncertain but " I don't view deflation as a near term risk for the US', Bernanke said. I think the Fed Reserve does have the capacity and the tools to meet the situation should there be a deflation, Bernanke asserted. New law along with tougher standard for bank capital and liquidity now being developed by the international regulators will place the financial system on a sounder footing and minimise the risk of repetition of the devastating events of past three years, US Fed chief said.
China's largest credit agency has blamed its counterparts in Europe and America for causing the global financial crisis demanding greater say in how governments and their debts are rated. Western rating agencies are politicised and highly ideological and they do not adhere to objective standard, a reputed paper quoted the Chinese official as saying.
China is the biggest creditor nation in the world so we should have a big say in how credits risks are judged, the same official said. Ms. Sheila Bair, chief of the US Federal Deposit Insurance Corporation, speaking in a similar vein said some members setting international capital standards are succumbing to disingenuous lobbying by the large banks. Ms. Mary Schapiro, chairman of SEC said she would require additional staff upto 800 to enforce the new financial regulatory law which became effective from today with President Obama putting his signature. SEC's role will expand greatly with new powers to monitor markets.
Europe must ensure that the stress test of banks are transparent to ensure their credibility, the IMF insisted. Many have expressed deep suspicion about the trustworthiness of the stress test. A total of 91 banks including HSBC, Barclays in Britain, Deutsche Bank in Germany, Societe Generale and BNP Paribas in France are undergoing test.
NEW YORK, July 22: US Federal Reserve has no immediate plans to infuse more cash into the economy, Chairman of the Fed Reserve Ben Bernanke said the American economy is recovering at a modest pace but with somewhat weaker outlook. The unemployment rate will remain stagnant at 7.0 per cent until the end of President Obama's first term at the White House which expires in 2012.
Ben Bernanke, presenting Fed's semiannual monetary policy to the Congress yesterday, said: "It would take a significant amount of time' to restore more than 8.5 million jobs lost in the United States in 2008 and 2009 and economic outlook remains unusually uncertain", the New York Times quoted him saying in a story today. He said European debt crisis has become less supportive of economic growth in recent months.
Forecasts are uncertain but " I don't view deflation as a near term risk for the US', Bernanke said. I think the Fed Reserve does have the capacity and the tools to meet the situation should there be a deflation, Bernanke asserted. New law along with tougher standard for bank capital and liquidity now being developed by the international regulators will place the financial system on a sounder footing and minimise the risk of repetition of the devastating events of past three years, US Fed chief said.
China's largest credit agency has blamed its counterparts in Europe and America for causing the global financial crisis demanding greater say in how governments and their debts are rated. Western rating agencies are politicised and highly ideological and they do not adhere to objective standard, a reputed paper quoted the Chinese official as saying.
China is the biggest creditor nation in the world so we should have a big say in how credits risks are judged, the same official said. Ms. Sheila Bair, chief of the US Federal Deposit Insurance Corporation, speaking in a similar vein said some members setting international capital standards are succumbing to disingenuous lobbying by the large banks. Ms. Mary Schapiro, chairman of SEC said she would require additional staff upto 800 to enforce the new financial regulatory law which became effective from today with President Obama putting his signature. SEC's role will expand greatly with new powers to monitor markets.
Europe must ensure that the stress test of banks are transparent to ensure their credibility, the IMF insisted. Many have expressed deep suspicion about the trustworthiness of the stress test. A total of 91 banks including HSBC, Barclays in Britain, Deutsche Bank in Germany, Societe Generale and BNP Paribas in France are undergoing test.