Excerpt from: GFT Analysts in the News
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| March 27, 2009 | | A number of efforts are being made to stimulate the U.S. economy | Right now, the name of the game is economic stimulus. It has been for quite some time now, but the Fed and the Treasury seem to have become really serious recently. FX Street reports that these two agencies are "all in":
The Fed and the US Treasury are now throwing everything into the battle
to eliminate dislocations in the financial system, avert a deflationary
spiral, and generate growth again over the medium term. Their reasoning
is that the US remains mired in a deep recession.
From new initiatives to quantitative easing, the Treasury and the Fed are implementing new programs and increasing the money supply at an unheard of rate. Indeed, there are concerns about the national debt and the fundamental effects these efforts will have down the road.
But, overall, Wall Street seems happy with the moves, and equity markets have been gaining. But other economic indicators -- like GDP and unemployment -- remain a problem.
| Topic Tags: currency market, economic stimulus, Fed, forex trading, fundamentals, quantitative easing, recession, Treasury, U.S. economy | |
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