Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UAE- Fed stimulus to end this year  Join our daily free Newsletter

MENAFN - Khaleej Times - 14/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Policy interest rates would begin to rise at some point in 2015 says lockhart

the us federal reserve is expected to end its bond-buying programme by october or december before raising interest rates in 2015 as the economy picks up steam federal reserve bank of atlanta president dennis lockhart said on sunday.

“this is a first step in the gradual normalisation of monetary policy. assuming continued recovery of the us economy and the closing of employment and inflation gaps the fed’s policy interest rates would begin to rise at some point next year” lockhart who is dubai.

speaking at the dubai international financial centre lockhart who currently holds a non-voting seat on the fed’s federal open market committee said its 10 billion step-downs in asset purchases looked set to continue. “i think tapering is going to phase out toward the end of the year” he said adding that he did not anticipate any reasons for a shift in fed’s crucial decision to taper its quantitative easing policy.

already the fed is in the midst of tapering its stimulative quantitative easing policy. on december 18 it decided to taper its bond purchases by 10 billion per month to 75 billion. after three additional reductions the programme currently stands at 45 billion per month. the fed’s new chairman janet yellen also expects the programme to wind down steadily through 2014 and conclude by year-end assuming the economy remains healthy.

lockhart said he was confident the us economy was now strengthening in line with his forecast of an annual growth rate of three per cent despite this first-quarter slump to 0.1 per cent growth. this will likely lead the fed to stop its bond buying in october or december he said.

his remarks echoed fed head yellen’s view that the economy was on track for solid growth this quarter.

lockhart said low inflation in the us europe and japan remains a concern. in the us the inflation rate is “beginning to move” in the direction of the central bank’s target of two per cent. the resource slack particularly both unemployment and underemployment would be absorbed. “conditions will develop by the middle of next year at which time we can conceivably begin a gradual process of raising interest rates.”

yellen said on may 7 that a high degree of monetary accommodation remains warranted as inflation and employment fall short of the fed’s congressionally-mandated goals. she said the fed would probably end bond-buying in the fall if the labour market continues to improve. us payrolls rose last month by 288000 in the biggest gain in two years and the 6.3 per cent jobless rate was the lowest since september 2008.

he said it may not be clear for several months or even quarters whether the us economy is firmly on a stronger and sustained growth path around a run rate of three per cent. he also said tensions between russia and the west over ukraine were of a concern as they have a potential to destabilise markets and economies.


 


Khaleej Times




  MENA News Headlines
 Feb 27 2015 - UAE's Etisalat posts USD13.28b revenue in 2014MENAFN
(MENAFN) UAE's Etisalat , or Emirates Telecommunications Corporation, posted USD2.42 billion net profit on revenues of USD13.28 billion in 2014, Gulf News reported.The telecommunications company said ...

 Feb 27 2015 - Oman's economic growth projected at USD75b in 2015MENAFN
(MENAFN) Oman's real gross domestic product (GDP) growth is projected at about 3.2 percent and 3.4 percent in 2015 and 2016, respectively, by global rating agency Standard & Poor's, Times of Oman ...

 Feb 27 2015 - UAE's Meraas gets USD588.8m contracts for advanced Dubai property projectsMENAFN
(MENAFN) UAE's Meraas was awarded USD588.8 million worth of contracts to Al Futtaim Carillion to build its ambitious Le Mer and Dubai Creek Waterfront schemes, The National reported.The project is ...

 Feb 27 2015 - Lebanon-born Syrian refugees risk stateless legal limboAFP
(MENAFN - AFP) Syrian refugee Yasmine Khalaf lies next to her day-old daughter Israa in a Lebanese hospital, worrying that her tiny newborn risks life without a legal identity. Israa, sleeping ...

 Feb 26 2015 - Jordan- King departs for CairoJordan News Agency
(MENAFN - Jordan News Agency) Amman Feb. 26 (Petra)- His Majesty King Abdullah II on Thursday left for Cairo on a visit to Egypt during which he will hold talks with Egyptian President Abdul Fattah ...

 Feb 26 2015 - Jordan- 688 dead 14000 injured in traffic accidents in 2014Jordan News Agency
(MENAFN - Jordan News Agency) Amman Feb. 26 (Petra)Statistics issued by the Central Traffic Department (CTD) Thursday showed that the number of traffic accidents and deaths had declined in 2014 ...

 Feb 26 2015 - Jordan- Conference on women in Sharia concludes meetingsJordan News Agency
(MENAFN - Jordan News Agency) Amman Feb.26 (Petra) - The closing session of Women in Sharia" conference which concluded meetings Wednesday evening discussed challenges faced by workers in the defense ...

 Feb 26 2015 - Jordan condemns burning of church in Jerusalem by Jewish extremistsJordan News Agency
(MENAFN - Jordan News Agency) Amman Feb. 26 (Petra)Minister of State for Media Affairs Mohammad Al Momani Thursday condemned the burning of a church by Jewish extremists in occupied Jerusalem earlier ...

 Feb 26 2015 - Jordan NATO discuss ties counter- terrorism effortsJordan News Agency
(MENAFN - Jordan News Agency) Amman Feb. 26 (Petra)Secretary-General of the Ministry of Foreign Affairs and Expatriate Affairs Mohammad Bani Yaseen and NATO Assistant Secretary General for Emerging ...

 Feb 26 2015 - Lebanese economy to grow 2.2 percent in 2015MENAFN
(MENAFN) Lebanon anticipates its economy to grow 2.5 percent in 2015, according to finance minister, after reporting a Eurobond of USD2.2 billion, the largest issue in the country's history, ...

more...


 






Google

Electronic & Mobile Payment

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help