As reported by «Market Leader» (US)
What will happen to dollar during the period of incentive policies?
Forex news, dollar rate. The Chairman of the US Federal Reserve System Ben Bernanke has claimed that additional monetary incentives are to be taken for the decline in unemployment rate. Such measures include the third stage of quantitative easing program, longer periods of minimal interest rates, and defining the major terms required to increase the cost of funding.
The rate of economic recovery in the USA was highly overrated. US economic growth is expected to happen very slowly. B. Bernanke supposes that it is connected with lasting debt crisis in Europe. Thus, the predicted GDP in the USA in 2012 has dropped to 2.5 – 2.9%, in comparison to the forecast in June 2011, when it amounted to 3.3 – 3.7%. The unemployment rate, on the contrary, has been reconsidered towards rising. It is predicted to rise from 7.8 – 8.2% to 8.5 – 8.7% by the last quarter of 2012.