|
May 31, 2012 4:09 AM GMT+0800 Federal Reserve Bank of Dallas President Richard Fisher saidEurope s debt crisis has done more to lower U.S. interest ratesthan the Fed s maturity-extension program, known as OperationTwist. We are the beneficiary of Europe s crisis because it makes theU.S. look relatively handsome, Fisher said in response to aquestion from the audience after a speech in San Antonio, Texas,today. That s one of the reasons interest rates are so low. The Fed announced in September it would replace $400 billion ofshort-term debt with longer-term securities, a program intended tolower borrowing costs and in turn support the recovery. The yieldon 10-year Treasury notes dropped to a record low today asinvestors grew concerned over the deepening crisis in Europe. I don t know what we would gain from further policy easing,given that borrowing costs already are so low, Fisher toldreporters after the speech. Liquidity is not the issue. Fed policy makers last month repeated their pledge to keep interestrates low through at least late 2014, citing a still- elevatedlevel of unemployment. Right now, we are in accommodative mode because economic growthis just above stall speed, Fisher said. Pending Home Sales Stocks fell and Treasuries rose today as Spain struggled torecapitalize its banks and concern grew about Greece s future inthe euro. The Standard & Poor s 500 Index fell 1.3 percent to1,315.72 as of 3:30 p.m. in New York. The yield on 10-year Treasurynotes fell to a record of as low as 1.6170 percent today. Recent economic reports have underscored the Fed s depiction of aneconomy that s growing moderately. Pending home resales dropped 5.5 percent in April, according tofigures released today by the National Association of Realtors. AMay 16 Fed report showed that industrial production increased 1.1percent in April, the most since December 2010. Several Fed officials said they would favor more stimulus shouldthe recovery falter or downside risks became great enough, minutes of the April 24-25 meeting showed. The Dallas Fed chief hasrepeatedly voiced his opposition to more easing, arguing thatthere s little more the central bank can do. Fisher, 63, isn t a voting member of the policy-setting FederalOpen Market Committee this year. He dissented last year twiceagainst moves to push down long-term rates and to keep thebenchmark U.S. interest rate near zero until at least mid-2013. Hevoted five times in 2008 in favor of tighter policy. The e-commerce company in China offers quality products such as China Flat Panel LED Light , Waterproof LED Flood Lights Manufacturer, and more. For more , please visit Flat Panel LED Light today!
Related Articles -
China Flat Panel LED Light, Waterproof LED Flood Lights Manufacturer,
|
