Federal Reserve sees stabilisation in the US economy
The chairman of the Federal Reserve, Ben Bernanke, has issued one of his more buoyant statements about the US economy for some time. While he still believes that the US property market has yet to bottom out he is adamant that a period of stabilisation is starting to form which could serve as a useful springboard for a full-blown recovery in due course.
The announcement came as some analysts became concerned about how the Federal Reserve would handle the potential increase in inflation as and when the US economy recovers. Thankfully Ben Bernanke has made the right noises by suggesting that the Fed is ready to tighten monetary policy in an instant as and when inflation begins to become a problem. Even though a relatively low level of consumer confidence could yet undermine a stabilisation period in the US economy there is a feeling that slowly we are seeing the large ship, which is the US economy, begin to turn.
However, as with any large ship it will take some time for a complete turnaround and choppy waters may yet be experienced in the short to medium term. There is no doubt that this will not be a journey for the fainthearted!
Share this..
Related stories
Bank Of England under pressure to increase quantitative easing fund
In one final push to drag the UK economy out of recession, a number of economists in the UK are putting pressure on the Bank of England's monetary policy committee to increase the quantitative easing fund by at least £50 billion. This would take the "liquidity enhancing strategy" to a total figure of £225 billion, which as pointed out in the Telegraph today, is more than the gross domestic produ...
Read MoreWill Lord Mandelson extend the car scrappage scheme?
As expected, Lord Mandelson will come under greater and greater pressure to extend the UK government's car scrappage scheme which encourages older vehicles to be scrapped in exchange for discounts of up to £2000 on new and more efficient vehicles. As we have covered on numerous occasions, the government's multi-million pound offer has been taken up by many car owners up and down the country and l...
Read MoreAre the John Lewis sales figures telling us something?
Last week we saw the disclosure of weekly sales figures from John Lewis, one of the U.K.'s bellwethers of the retail sector. Unfortunately, as with the week before, sales were down again at the chain and the company is starting to make noises regarding tough trading in UK retail sector. Even though this is only two weeks of sales figures the fact that the company has seen fit to issue a downbeat s...
Read MoreGold hits record high as dollar falls
The price of gold hit just under $1112 today to mark an all-time high as the dollar tumbled and investors decided on a safety first tragedy by investing in gold. Gold has for many years been seen as a counter cyclical investment which does well in the bad times but not so well in the good times. It will surprise many to see the price hit a new all-time high when you bear in mind the renewed optimi...
Read MorePostal strike could cost jobs
While the UK government, UK Post Office and the unions continue to bicker regarding the future of the UK Post Office it seems that many small businesses are suffering more than most. Unable to deliver bills, pay invoices and deliver general correspondence, many small business operators have appealed to the unions and the Post Office to get back to the negotiating table and find a settlement to the...
Read More