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USA Fed considers setting „triggers” to guide economy
Posted by: admin
octombrie 5, 2012 |
Washington- The Federal Reserve considered setting triggers on inflation and unemployment rates to better guide the economy. According to minutes from the Federal Open Market Committee meeting on Thursday, the numerical thresholds would act as guides in monetary policy decisions.
Many participants were in favour of Chicago Fed president Charles Evans’ suggestion to allow inflation to reach 3% till unemployment levels drop below 7%. However some Fed members were concerned that the central bank’s bond-buying accord made an exit strategy more complex than ever. Nonetheless most of the Fed board members consider the risks of inflation to be „more or less balanced.”
The Federal Reserve, according to the minutes, launched the QE3 as it was certain that the economy would not grow enough to lower the unemployment rate without further support. (AGI)