Federal Reserve System (FRS) the USA, may have to start raising rates as early as 2010, cites the opinion of the Stanford University professor John Taylor agency Bloomberg.

raise, in his opinion, would be associated with attempts to curb the rise in prices.

If inflation begins to rise as the economic recovery, the Fed will raise rates in the first quarter of next year, said Dzh.Teylor in an interview with Bloomberg Television on Friday.

Currently, rates range from 0% to 0.25%. This record level was set in December last year in order to support the economy.

As a result of emergency measures to save the number of branches of the U.S. economy, particularly the financial sector, including insurers such as American Insurance Group Inc., the assets on the balance of the Federal Reserve increased by $ 1.2 trillion. the past year.

The balance of the Fed has reached immense proportions. They need to find a way to reduce it - sure Dzh.Teylor.

As previously reported, U.S. Treasury Secretary Timothy Geithner said last Thursday, speaking before the U.S. Congress that the economy no longer needs such a strong support from the state. View of this and the Finance Ministry and the U.S. Federal Reserve now to look for so-called exit strategies, or ways to minimize economic stimulus.
Commenting on the statement

T. Geithner, Dzh.Teylor said: He is right when he draws our attention to the fact that it is time to think about it (downsizing of state support).

In addition, the existing package of measures to stimulate the economy, which Dzh.Teylor described as a potentially contributing to inflation, negative impact on increasing the state budget deficit, which this year could reach $ 1.6 trillion, according to the Congressional Budget Office.

At the same time, the economist noted that not yet seen any real positive impact of this plan on the economy.

administration of U.S. President Barack Obama, however, argues that the measures taken under this plan, slowed the decline in GDP. The reduction in the second quarter would be at 2.3 percentage points higher if the plan was not activated.

Analysts polled by Bloomberg, predicted an increase in GDP in the third quarter to 2,9%.

John Taylor - professor at Stanford University in California, USA, author of Taylor ruleused to calculate the central banks of the level of interest rates on the basis of GDP growth and inflation. Earlier Dzh.Teylor worked in the administration of George W. Bush. According to The Wall Street Journal, one time it was called a possible successor to Alan Greenspan as head of the Federal Reserve, is currently Dzh.Teylor actively criticizes the policy of the Treasury and the Fed, believing that low interest rates have helped inflate a bubble in mortgage lending market.

Tigipko hoped for a speedy investigation into irregularities in NBU
Dry cleaning does not help

Banks learn how to manage reputation and communications system to increase its price ...

Cashier for Power

financial crisis has changed not only the format of the Ukrainian banking market, but also turned the Savings Bank of Ukraine in kvazibank ...

Deposits of legal entities - Market Overview
Deposit for private individuals - Market Overview
Loans to legal entities - Market Overview
Forex Asia
Loans to individuals - Market Overview
Dynamics of oil futures contributed fire-sale on domestic exchanges