jueves, 1 de agosto de 2013

REPORT OF THE 31/07/2013 FEDERAL RESERVE CONCLUSIONS

The US Federal Reserve.UU. It has indicated that it will keep purchases per month of $ 85 billion in mortgage securities and treasuries
The FED has given no indication of date certain to begin to reduce the amount of stimulus money, even though fixed as objective fact to keep in mind that unemployment should reach 6.5% to evaluate the withdrawal of monetary stimuli
It has pledged to keep the benchmark rate at 0.25 %
It has warned that low inflation could harm the economic expansion but the long term within the expected inflation rate, since I change the qualification of growth as "modest" from "moderate" mainly by the "flashy" adjust I Q of the 2013 growth downward
The labour market has improved although the unemployment rate remains high, as objective an unemployment rate of 6.5 %
He pointed out that investment in companies that has grown by 9% in the IIQ, consumption product of progress in employment creation and the sector housing is spreading mainly highlighting the increased valuation of real estate, while mortgage rates have been rising.
Conclusions
As the main fact is that stimuli will remain without a date certain end but if it is important that it has set objective data of evaluation which is 6.5% in the unemployment rate, given the pace of employment growth can predict that the horizon so that it begins to decrease stimulus them are far.
A very important data to take into account is the value of the properties that it is growing has moderated in the last month and is in jeopardy by the rise in long-term rates mainly those concerning mortgage loans.
Long inflation is being observed since to be tendentially below 2.5% of the projected it might endanger the economic recovery process, is the great fear of Ben Bernanke to the deflationary processes known, obviously strong monetary expansion will not pass an inflation in the prices of goods and services but that have been derived to a strong process of revaluation of financial assets (stock market developing bubble) and exporting inflation to the real assets in emerging countries.