Ben Bernanke promises assistance for the US economy
Ben Bernanke, the chairman of the Federal Reserve, has today confirmed that the "committee" will use every tool in its power to support the US economy and its fragile recovery. This comes after news of a significant downwards revision in the second quarter GDP figures which has somewhat shocked investment markets.
Even though no timetable has been suggested regarding further assistance for the US economy the Federal Reserve will need to act sooner rather than later to rescue the brittle recovery. This comes only months after the US economy seemed to been pulling away from the recession with relative ease and appeared set for a sustained and impressive recovery phase. While there is very little that the US authorities can do regarding US base rates it seems highly likely that we will see further capital injected into the money markets.
Whether the US government will be able to reduce the tax burden on US companies and the US population remains to be seen but every dollar which can be saved needs to be reinvested into the US economy at this very difficult time. We are likely to see a meeting of the major central banks of the world in the short to medium term to discuss any options available to support the worldwide economy.
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