US authorities desperate to support the dollar
Ben Bernanke, the Federal Reserve chairman, has this evening thrown his support behind the US currency in a rare vote of confidence from the Federal Reserve. The US government appears desperate to support the greenback which has now fallen to a 15 month low on the currency exchanges and is under constant pressure. While would expect the Federal Reserve to comment upon the currency at regular intervals, this is actually the domain of the Treasury department under normal circumstances.
It seems as though a prolonged period of low interest rates in the US has seen many investors take flight to more "risky" investments as they look for improved investment returns and potential for the future. The fact that the US base rate looks likely to remain low for some time does not bode well for the US currency and the government seems to have eventually caught on to this.
Many people are looking to the US economy to pull the worldwide economy out of the economic slump and if there is any pressure in the US markets which reduces economic activity in the short term then we could all be in trouble. The US authorities have spent massive amounts of money trying to support the economy and his big gamble needs to pay off in the short term.
Share this..
Related stories
New scheme urges businesses to give staff time off to budget
A new national initiative is asking employers to get their staff to commit to spending one hour a month sorting out their finances, as part of drive to make people take better care of their finances.The 'My Budget Day' scheme, led by AXA, is backed by Richard Lambert at the Confederation of British Industry (CBI) and the union Unite, and will mean that staff will once a month be given the first ho...
Read MoreGovernment warned about leaking information to the press
John Bercow, the new Speaker of the House of Commons, has today reminded the UK government that all future key policy statements must be heard by the House of Commons rather than being leaked to the press. His comments come as the UK government stands accused of leaking documents and information to the press with regards to the Bank of England and the potential for changes in the regulatory system...
Read MoreGordon Brown performs U-turn on childcare vouchers
Gordon Brown has been forced into an embarrassing U-turn on his attempt to tax the middle class families of the UK and reduce their childcare voucher entitlements. After a significant Labour backbench revolt it is believed that middle-class families will be allowed to retain the £2400 year in tax benefits attached to the childcare voucher system. There had been plans to scrap any tax relief for t...
Read MoreUK government ups stake in Royal Bank of Scotland to 70%
The recent £5 billion share offer from Royal Bank of Scotland (RBS) appears to have been a disaster with just 0.7% of the shares on offer placed with institutions. This has left the UK government to take up the balance and increase the taxpayer's stake in the business to 70.3%. However, those who believe the situation at RBS will now calm down may be in for a significant shock.
The...
Has George Osborne played into the hands of the Labour Party?
George Osborne has today announced plans for the Conservative party to save UK voters £23 billion over the next five years with massive cuts in public sector spending. Indeed, the proposed cuts would be the largest for 30 years, a factor which has surprised many in the UK. So is this a calculated gamble by George Osborne or has he played into the hands of the Labour Party?
There is...