Rus News Journal

The future active FRS supports softening of a monetary policy of the USA

to Federal reserve system (FRS) the USA, possibly, shortly it is necessary to go on the further softening of a monetary policy, representatives FRS believe. In particular, the president of Federal reserve bank of Chicago Charles Evans and the head of Federal reserve bank of Boston Eric Rozengren, acting at a forum in Bangkok, have informed that on the third round of quantitative softening (QE3), probably, it is necessary to go to support growth of national economy and to lower a rate of unemployment, even despite risk of time dispersal of inflation, transfers Reuters.
it is necessary to notice that E.Rozengren and C.Evans are supporters of a soft monetary policy. In spite of the fact that any of them now has no vote in Committee on operations in open market FRS (a principal organ defining credit - the monetary policy of the USA), both will receive it next year.
Comments of representatives FRS have followed against the unfavourable macroeconomic statistics testifying to delay of rates of increase of the largest economy of Asia - the Peoples Republic of China and Japan. So, the index of volume of orders for mechanical engineering production in Japan has shown in May 2012. Recession on 14,8 % that has strongly dispersed from forecasts of the analysts expecting decrease on 3,3 %. The indicator reflects readiness of the companies to invest in business development, and experts seriously are afraid that decrease in volume of the means allocated for capital expenses, can create serious risk for growth of economy of Japan.
do not inspire optimism and the published data on inflation in the Peoples Republic of China: growth of consumer prices in June 2012. About 2,2 % in annual calculation against 3 % of the growth observed in May that has warmed up a wave of hearings that the economy of Heavenly Empire is slowed down were slowed down.
the Data published in the Peoples Republic of China and Japan, is at the bottom for additional anxiety of investors, underlining gloomy forecasts on prospects of growth of economy of the USA, sounded by E.Rozengrenom.
so, the president of Boston branch FRS has informed that predicts low rates of increase of economy of the USA against instability of world economy. The financier has noticed that expects in 2012. Inflation in the USA at a rate of 1,2 % in 2012., growth of a total internal product (gross national product) within the limits of 1,9 - 2,4 % and a rate of unemployment in 8 - 8,2 %.
My pessimism is based on expectations of weak indicators under investments, pure export and the State expenditure at preservation adverse financially - economic conditions in Europe - has explained E.Rozengren.
it is not lonely in pessimistic estimations of short-term forecasts for the American economy. Experts of Uoll - strit almost unanimously declare necessity of third round QE. Thus last polls of economists testify that exists 70 - percentage probability of start FRS of the program of quantitative softening on 2,3 trln dollars According to C.Evans, additional softening of a monetary policy is necessary to restore potential of growth of the American economy. current circumstances demand the strongest stimulating policy - it has explained.
in the meantime head FRS Ben Bernanke, making speech in joint economic committee of the congress, has not submitted signals about possibility of the third round of quantitative softening. B.Bernanke has repeated that the Federal reserve watches closely for essential risks for the American economy, resulting from Europe, also it is ready to protect economy in case of situation deterioration in the financial markets.
the data published on last week about growth of a rate of unemployment in the USA with 8,1 to 8,2 % in May 2012. And proceeding financial disorders in an eurozone also raise chances of renewal of program QE by the American Central Bank.