Weak Economy and threatening European crisis leading to weak job growth in US .The two-day Federal Open Market Committee meeting convenes Tuesday, following signs that Fed officials have become more willing to act to address disappointingly slow U.S. economic growth. The ECB meets Thursday, a week after its head, Mario Draghi, lifted expectations when he said the central bank would do "whatever it takes" to preserve the euro, within its mandate to keep inflation low.Anticipation of such moves has spurred markets in the past, but they have deflated again afterward amid renewed sentiment that the fundamental problems in U.S. and European economies remain too deep-seated for central banks to fix. Fueling investor skepticism now is the sentiment that the central banks are moving largely alone: Leaders of both central banks, warning that monetary policy has its limits, are pressing elected politicians to do more to reduce uncertainty and bolster growth.
The Fed could unveil a new program for buying mortgage or government securities to bring down long-term interest rates, or take other actions to spur growth, or simply promise to do more later if necessary. Officials might wait until September, when they will formally update their economic forecasts, before deciding anything significant.
The Fed could unveil a new program for buying mortgage or government securities to bring down long-term interest rates, or take other actions to spur growth, or simply promise to do more later if necessary. Officials might wait until September, when they will formally update their economic forecasts, before deciding anything significant.
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