HK Pacific – Fed QE3 Pantomime Plays Out.

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<h1>HK Pacific – Fed QE3 Pantomime Plays Out.</h1><strong> Author: <a href='http://www.articleseen.com/profile_Boutiquemedia.aspx'>Boutiquemedia</a></strong><br /><p>HK Pacific: The US Federal continued its less than subtle pulse-taking exercise in the financial markets as Charles Evans, President of the Chicago Federal Reserve announced on live television that he felt that QE3, if launched, would need to be more aggressive than previous efforts. He believes that asset purchases would need to remain in place until such time as the official unemployment rate in the US dropped to 7% or until inflation hit 3%. Some economists have questioned whether a withdrawal of economic stimulus measures could harm the US economy’s recovery. “Mr. Evans is definitely one of the more dovish members of the FOMC,” said an analyst at “HK Pacific”. “We think that more easing would be a huge mistake but they’ll do it anyway,” he concluded. The head of the US central bank reiterated an earlier pledge to keep interest rates at their current historical lows for “an extended period”. Interest rates have been held at between 0% and 0.25% – a move designed to boost lending and spending – since the depths of the financial crisis in 2008. The US economy grew at an annualised rate of 2.7% in the first quarter of the year, having emerged from recession last year. Consumer confidence plunged last month after a battle over the deficit slammed stock prices and pushed the nation to the brink of default. The country's debt was then downgraded. "The consumer reacted to the debt ceiling (fight), the downgrade and the equity market swoon by basically hunkering down and not spending," said Tom Porcelli, senior US economist at RBC Capital Markets in New York. Citing the weak data, Nomura cut its forecast for third-quarter US economic growth to 2.4 per cent from 2.6 per cent. However, major US stock indexes shook off the data and closed higher after European leaders showed new urgency in efforts to contain the euro zone debt crisis. Since the financial crisis hit in 2008, the Federal Reserve has expanded its balance sheet past the $2.5 trillion mark and kept its funds rate near zero in an effort to stimulate the economy but the results have been mixed. “HK Pacific” suggests that there is a distinct chance the US economy will re-enter recession without the additional stimulus. The company is on record as saying that the best thing for the US economy would be a recession that could clean out all the excesses in the system whilst allowing poorly run companies and banks go to the wall.</p><strong>About the Author:</strong><br />http://www.hk-pacific.com<p> Article Source: <a href='http://www.articleseen.com/Article_HK-Pacific-–-Fed-QE3-Pantomime-Plays-Out_82586.aspx'> http://www.articleseen.com/Article_HK Pacific – Fed QE3 Pantomime Plays Out._82586.aspx</a></p>

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Keywords : HK Pacific, Hong Kong Pacific, HK-Pacific,

Category : Business : Business