Recently, most economic data released by the United States performed well, but last Friday's employment data gave further dampen the enthusiasm of the U.S. economic recovery. As the pace of economic growth not enough to significantly reduce unemployment, some analysts expect the second half of this year, the Fed will buy more bonds, the U.S. fiscal position is likely to accelerate deterioration.
payrolls less than expected
years ago, part of the shares is expected to soar! Confidential! Market institutions will soon be reversed capital flows have changed dramatically! Main funding is plotting a new layout
U.S. Labor Department data showed U.S. non-farm sector in December last year, the unemployment rate fell to 9.4%, the lowest in 19 months. However, the unemployment rate fell in part because many unemployed people stopped looking for work, so there is no included in the statistical category. At the same time last year, the nation's new jobs in December was only 103,000, less than half of market expectations.
despite increasingly good data from the U.S. economic recovery has strengthened, but the Some analysts said that many business owners want to wait until a more robust economic recovery, after expanding recruitment. Obama said that the most important task is to further stimulate economic growth and job creation.
Federal Reserve Chairman Ben Bernanke testified before Congress that the U.S. economy continues to recover, but jobs per month in 2010 increased by only about 10 million, the pace of growth not enough to significantly reduce unemployment. At this rate if the job market back to normal requires 4 to 5 years.
by less than expected payrolls data drag U.S. stocks lower on Friday, the international oil prices continue to drop, the dollar index will remain high and volatile. Some market participants expect the U.S. economic recovery still faces many risks, even if this week's new round of corporate earnings reporting season brisk performance, the U.S. stock upside is limited.
quantitative easing, the Fed or expand the scale of
Vice President Janet Yellen said yesterday the Federal Reserve, the second quantitative easing to promote U.S. economic recovery, it will be in achieving maximum employment and price stability play an active role, the Fed can make two rounds of quantitative easing in private sector employment increased by 300 million people by 2012.
Moreover, Yellen said the Fed need not worry about the market's quantitative easing measures to push up inflation. Bernanke said the Fed is trying to balance the risks of inflation and deflation.
However, less than expected jobs data caused the market for the Fed to reconsider the size and scope of quantitative easing is expected. Kaufman said the well-known Wall Street economist, this year will slow U.S. economic growth, the Federal Reserve 600 billion U.S. dollars in bonds to complete the full purchase plan, may buy more U.S. Treasury bonds in the second half.
American local financial difficult
Fed's quantitative easing trigger a global hot, questioning the dollar and U.S. debt bubble voice heard. In addition, the U.S. debt crisis is also the local surface. Bernanke said the U.S. fiscal policy is facing serious challenges, policies need to consider the current weakness in economic activity and still-fragile recovery.
Bernanke believes that the long term, the financial position of the United States will accelerate deterioration. By 2035, the federal public debt to GDP ratio from 60% in fiscal 2010 rose to 185%. International Monetary Fund (IMF) First Deputy Managing Director John Lipsky said the U.S. financial situation is a major challenge facing the Government.
Currently, many U.S. municipal and state level of government debt, Bernanke said the Fed can not insolvent borrowers to provide loans or emergency assistance, even if the U.S. municipal bond default by a large number of local outbreaks The Fed will not come to the rescue.
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