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Showing posts from June 23, 2011

No QE3, so ball now in politicians' court

Business Times - 24 Jun 2011


No QE3, so ball now in politicians' court

By LEON HADAR
WASHINGTON CORRESPONDENT

POLICYMAKERS at the US central bank have been surprised by the continuing weakness of the American economy - but they are hoping that things will pick up later this year.

This sense of apprehension about the current slow pace of the economic recovery was expressed by the members of the Federal Open Market Committee (FOMC) on Wednesday, following a two-day meeting in Washington during which they agreed to shift policy and to end the US$600 billion bond-buying programme (aka QE2, or Quantitative Easing Part 2) as scheduled by the end of this month.

Much of what the Federal Reserve announced on Wednesday should not have come as a big surprise to politicians in Washington or to investors on Wall Street, who share the growing anxiety about the feebleness of the recovery.

The Fed in its statement, and chairman Ben Bernanke during a press conference, seem to be providing official confi…