Fed’s Fisher on the Wires
Written April 17, 2009 at 12:02 AM EST by Danish FX
Fed’s Fisher: Treasuries and USD boosted by Fed actions; Implosion of export markets has made US downturn worse
- Deep global recession is worst since 1940′s
- Innovative Fed policies will hasten US recovery
- Inflation not a threat to US economy over next couple years, pervasive bias toward lower prices at work
- Eurozone challenges exceed those in US
- Treasury’s debt is tied to US policy; Fed is independent and will not monetize Treasury debt
- US economic data in Q1 is grim, GDP decline likely to be sharp
- Unemployment rate likely to reach 10%
- Note: On 4/14, Fisher said that he saw a strong case in favoring the dollar, based on capital returns and at the same time he noted that he did not expect sharp declines in USD fx rates. Also, on 4/14 Fisher said that the jobless rate could exceed 10% by the end of 2009 and that he expected US Q1 GDP to contract at a “very dismal” rate.
- Innovative Fed policies will hasten US recovery
- Inflation not a threat to US economy over next couple years, pervasive bias toward lower prices at work
- Eurozone challenges exceed those in US
- Treasury’s debt is tied to US policy; Fed is independent and will not monetize Treasury debt
- US economic data in Q1 is grim, GDP decline likely to be sharp
- Unemployment rate likely to reach 10%
- Note: On 4/14, Fisher said that he saw a strong case in favoring the dollar, based on capital returns and at the same time he noted that he did not expect sharp declines in USD fx rates. Also, on 4/14 Fisher said that the jobless rate could exceed 10% by the end of 2009 and that he expected US Q1 GDP to contract at a “very dismal” rate.
Categories: Forex News | Tags: Fed
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