InfoAnda - Fed to stamp out idea of early rate hike: analysts

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

China to increase supply of money to boost economy | 14 December 2008
10 NATO soldiers killed on deadly Afghan day | 8 June 2010
Philippine gun makers take aim from the backyard to the production line | | 29 July 2012

`Avatar' previews held worldwide for eager fans | 22 August 2009

">Forum Views () ">Forum Replies ()

Read more with google mobile : Fed to stamp out idea of early rate hike: analysts

Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Search Search: Fed to stamp out idea of early rate hike: analysts AFP - 2 hours 58 minutes ago WASHINGTON (AFP) - - A jittery bond market and economic "green shoots" notwithstanding, the Federal Reserve is likely to reaffirm a commitment to keep pumping money into the economy to battle recession, analysts say. ADVERTISEMENT The Federal Open Market Committee (FOMC) led by chairman Ben Bernanke is expected at a two-day meeting opening Tuesday to maintain its near-zero base interest rate along with a variety of programs providing easy liquidity to the financial system. Scott Brown, chief economist at Raymond James & Associates, said any shift in policy or emphasis by the Fed could rattle financial markets and imperil a fragile recovery taking root. "I don't think the Fed members want to do or say too much," Brown said. "They don't want to rock the boat." Brown said that at some point the Fed will need to lay the groundwork for reducing its unprecedented stimulus, to avert a surge in inflation, but that "it's too early to lay much of that groundwork." "You are looking at low inflation and a lot slack in the economy," he said. "The Fed is committed to keeping the lending rate very low for a long time." Cary Leahey, senior economist at Decision Economics, said the Fed may take the unusual step of signaling a specific time frame for maintaining its easy money policy, to counter the bond market, which has been pushing up rates in anticipation of a potential hike this year. "The FOMC must be perturbed that some people are pricing in a Fed tightening this year, which seems almost ludicrous given how close we came to the brink of Armageddon," Leahey said. "We're not even sure the economy has hit bottom." Leahey said that by tradition, "the Fed doesn't tighten credit until the unemployment rate peaks, and that won't happen until 2010, so I think the bond market is way ahead of the Fed." The Fed has already embarked on a massive program to purchase up to 1.2 trillion dollars in government and agency debt in an effort to bring down a variety of interest rates it does not control. Bernanke calls the effort "credit easing" while others call it "quantitative easing." It is aimed at lifting the economy out of its worst crisis in decades. But a sharp rise in bond yields, which translates into higher lending rates for mortgages, has raised fears that the recovery could falter despite Fed efforts. The yield on 10-year bonds has jumped as high as 4.0 percent before settling back a bit, and this has lifted mortgage rates from recent record lows. Leahey said this rise "is very much a positive development" because it reflects a normalization of the financial system, which suffered a near-meltdown after last year's collapse of investment giant Lehman Brothers. He also argued that if the economy is getting back on track, the housing market will be able to absorb a modest rise in interest rates. This argues against any move by the Fed to boost rates to control inflation and appease the bond market, Leahey argued. "If they hike rates in the next six months and the economy falls back, a certain Fed chairman will not get reappointed and a certain president will not get reelected, and neither one wants that to happen," he said. Some argue the Fed will want to acknowlege the "green shoots" of recovery to help boost confidence. "There is increasing evidence that the recession is ending and that a return to positive growth is imminent," says Barclays Capital economist Dean Maki. "Given this backdrop, the Fed is likely to sound more upbeat on growth prospects than its April statement that 'the pace of contraction appears to be somewhat slower.'" But he argued that the Fed "will likely want to balance this upbeat view with some rhetoric emphasizing headwinds still facing the economy, and it will likely aim to convince investors that tightening is not imminent." Others say a recovery may come faster and stronger than the Fed anticipates, which could pose a new conundrum for monetary policy. Robert Brusca of FAO Economics said he sees signs of a "V-shaped" recovery and added: "If I'm right it puts the Fed in a very difficult position." "If the economy is starting to recover the Fed may need to raise interest rates on the early side, to reassure the bond market," said Brusca. "But it doesn't want to raise rates enough to spook the bond market and stop the recovery in its tracks." Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Enlarge Photo A trader takes a break on the floor of the New York Stock Exchange. A jittery bond market and economic "green shoots" notwithstanding, the Federal Reserve is likely to reaffirm a commitment to keep pumping money into the economy to battle recession, analysts say. Most Popular – Top Stories Viewed Schwarzenegger in mid-air jet drama Chubby people live longest: Japan study Botox helps Australian stroke victim to walk again Clones of 9/11 hero dog unveiled in Los Angeles F1 governing body 'not surprised' at sport's split View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

Other News on Sunday, 21 June 2009
Suicide truck bomb kills 50 in northern Iraq
Tsvangirai shouted down by Zimbabwean exiles in London
Apple CEO received liver transplant: report
German bank opposes massive loan to Porsche: minister
Fierce Tehran clashes between police, protesters
Suicide truck bomber kills 67 in northern Iraq | International |
Iraq truck bomb kills 46 near Kirkuk
Singapore says would act if North Korea ship has WMD | International |
Lawsuit brings murky West Bank land deals to light
Excerpts from address by Iran's Ayatollah Khamenei
Zimbabwe's Tsvangirai booed for come home plea | International |
Foreign soldiers among dozens killed in Afghanistan
Malawi authorities seize ex-president's passport | International |
Abbas talks Palestinian unity with Syria's Assad
THE INFLUENCE GAME: Excuse me! Lobby wins on burps
Taliban gains money, al-Qaida finances recovering
AP NewsAlert
Heroes' welcome for NKorean football team
Steve Jobs received liver transplant: report | Technology |
Obama asks men to be better fathers than their own
Heroes' welcome for NKorean soccer team
American Journalist Held Captive By Taliban For 7 Months Safely Escapes
WSJ: Apple CEO Steve Jobs had liver transplant
Pakistan says it's wrapping up Swat campaign
Red panda at ND zoo has rare set of triplets
Two Marines Charged In The Murder Of An Army Nurse
Schwarzenegger's Plane Makes Emergency Landing
Sri Lanka arrests 2 local UN staffers
Thousands remain without power following storms
THE INFLUENCE GAME: Excuse me! Lobby wins on burps
Fighter jets hit militants in Pakistan's Waziristan
Sotomayor Quits Women-Only Club
iPhone 3GS Hits Stores In U.S., 7 Countries
At Least One Dead, Several Injured In Illinois Train Derailment
US, regional powers may meet on NKorea next month
Moderate quake shakes central California
U.S. Customs, Agriculture Agencies Find New Pest In Guatemala Pineapple Shipment
Analysis: Obama offers split verdict on economy
U.S. Robot Sub Dives Into Ocean's Deepest Spot
Mistakes by US force 'likely' caused Afghan deaths
Louisiana Lawmen Seek Escaped Murder Suspect
Pot Goes Up In Smoke, Turns Into Energy In Florida Incinerator
Michelin may open India factory in 3 years: CEO
Sandra Bullock finally has top film at box office | Entertainment |
Hollywood studio Paramount axes top executives | Entertainment |
Novelist Kaye Gibbons faces yet another hurdle
FBI tried in vain to stop "Deep Throat" film
Madonna's adopted daughter said to leave Malawi
Variable iTunes pricing a moneymaker for artists
Britain's Brown determined to stay on
British hostages' families 'clinging to hope'
Iran's Mousavi calls for purge of lies | International |
Ecuador threatens to expell oil firms
Streaming music service Spotify basks in praise
Singapore says would act if North Korea ship has WMD | International |
Brazil takes radar plane off Air France jet search
Truck bomb kills more than 70 in northern Iraq
Dalai Lama says favors democratic leadership | International |
Thousands march in Spain to condemn killing blamed on ETA
Top cleric may be playing role in Iran unrest
Attack on key U.S. Afghan base kills two soldiers | International |
Japan eyes bigger military as tension rises: report | International |
Suicide truck bomber kills 67 in northern Iraq
China police rescue trafficked children | International |
Iraq truck bomb kills 64
Foreign soldiers among dozens killed in Afghanistan: officials
Australia PM challenges opposition over allegation | International |
Mousavi ready for "martyrdom"
Two British hostages feared dead in Iraq | International |
Nigeria militants say attack two Shell oil pipelines | International |
Gunfire, euphoria: week that shook Iran
New York Times reporter escapes Taliban captivity
Variable iTunes pricing a moneymaker for artists | Technology |
Cambodia in war of words with Thailand over border
Fed to stamp out idea of early rate hike: analysts
Croatia needs Chinese investments, Hu Jintao told
New net timer could save sea turtles from drowning
Japan's Yano makes move for breakthrough Asian major win
Obama may need firmer hand on health care debate
City in central China rocked by violent riots: residents
Streaming music service Spotify basks in praise | Technology |
Unseen Dali drawings to be shown in Buffalo
Senior spelling title goes to Virginia man
Northwestern honors journalist freed from Iran
Pa. borough raises orange flag for street crossers
Obama praises drug deal, declares 'turning point'
Edison Chen not ready for lead roles after scandal
Miley Cyrus fights scalpers with paperless tickets
After 50 years, Motown endures in ailing Detroit
Miley Cyrus fights scalpers with paperless tickets | Entertainment |
Crisis won't stop Latvia's midsummer night party
"Idol" champ Sparks ready for "battle"
Idol champ Sparks ready for battle | Entertainment |
Barbecues and baking: relief of Vietnam's Net addicts
Madonna's star power in Malawi
FBI tried in vain to stop 'Deep Throat' film
Spain launches 'Spanish language day' worldwide
Sandra Bullock finally has top film at box office
Israeli president applauds Iran street protesters
Death toll from Iraq's Kirkuk blast rises to 73 | International |
Xstrata 'in merger approach to Anglo American'
British parliament to select new Speaker
Pakistani aircraft hit militants near Afghan border | International |
Iraq bodies are British hostages: government sources
Israel's Barak sees chance for peace progress | International |
Israel's Barak sees chance for peace progress
Iraqis happy at U.S. pull out, but fear more attacks
Barak says Israel must be respected as Jewish state
Islamists vow to fight any foreign troops in Somalia | International |
Two NATO soldiers killed in attack on Afghan base
Iran death toll mounts as leaders take aim at West
Yemeni who killed Jew gets death sentence | International |
NKorea criticizes US nuclear protection of South
Thousands donate hair to fix Myanmar pagoda road
NY senator has little time to prep for 2010 race
Factory blast kills 16 workers in eastern China
Report: Sri Lanka may extend president's term
Japan whaling town gets season's first catch
New Zealand expects big rise in swine flu cases
Infant Killed When Someone Rolled On Top Of Her
Rockets hit US base in Afghanistan, 2 troops dead
Myanmar jails Suu Kyi supporters for pagoda prayer
Thousands Of Concert-Goers Stranded In Michigan
One Dead, Five Hospitalized After Ammonia Leak At Poultry Plant
Indonesian fugitive businessman arrested for graft
4 hurt in winds as tropical storm nears Taiwan
New Poll Finds 72% Of Americans
Apple's Jobs Had Liver Transplant
House Impeaches Federal Judge
Body Of American Boy Found In Switzerland
Airbus to deliver first China-made airplane
Japan's key Tankan survey to post big leap
Philippines' Arroyo backs Asian IMF: report
S.Korea exports fall 13.3 pct in 1st 20 days of June
China-driven commodities rally nearing end
South Korea May start-up/failure ratio at 2-yr high
Yeoh says she'll star in John Woo kung fu movie
McGregor: 'Angels' no challenge to Catholic faith
Director: No wide China release for 'The Reader'
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01