Related News
Fed backs extended support policies
By Zhang Fengming |
March 23, 2010, Tuesday
|
Online Edition
Online Edition
AMERICAN monetary policy is likely to remain accommodative for at least six months to support economic growth, a top United States Federal Reserve official said today in Shanghai.
The policy-setting Federal Open Market Committee voted last week to keep its benchmark rate near zero for an "extended period" and said measures to support the housing market will end this month as planned.
"Extended period is a conditional statement but I would expect it means that will hold for the next three or four meetings, which will be about six months," said Charles L. Evans, president of the Federal Reserve Bank of Chicago, today in Shanghai.
"Frankly I think that conditions would continue towards substantial accommodation certainly through the end of this year," Evans told a press briefing. "I wouldn't be surprised if that is required into 2011."
He said that in containing US inflation, he strongly supported accommodative policies until the unemployment rate comes down or rising inflationary pressures emerge.
He said inflationary pressures in the US are "extremely well contained," with core inflation about 1.5 percent, within a target of 2 percent.
The targeted unemployment rate is 5 percent. The US unemployment rate held at 9.7 percent in February.
"Employment is often the last piece of the puzzle in the United States to fall into place," Evans said.
He also said that during his meetings with business in the US, the yuan issue doesn't come up as much as production development or other issues partly because companies have a variety of hedges against currency risks.
The policy-setting Federal Open Market Committee voted last week to keep its benchmark rate near zero for an "extended period" and said measures to support the housing market will end this month as planned.
"Extended period is a conditional statement but I would expect it means that will hold for the next three or four meetings, which will be about six months," said Charles L. Evans, president of the Federal Reserve Bank of Chicago, today in Shanghai.
"Frankly I think that conditions would continue towards substantial accommodation certainly through the end of this year," Evans told a press briefing. "I wouldn't be surprised if that is required into 2011."
He said that in containing US inflation, he strongly supported accommodative policies until the unemployment rate comes down or rising inflationary pressures emerge.
He said inflationary pressures in the US are "extremely well contained," with core inflation about 1.5 percent, within a target of 2 percent.
The targeted unemployment rate is 5 percent. The US unemployment rate held at 9.7 percent in February.
"Employment is often the last piece of the puzzle in the United States to fall into place," Evans said.
He also said that during his meetings with business in the US, the yuan issue doesn't come up as much as production development or other issues partly because companies have a variety of hedges against currency risks.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
