Banks

FED remains with low interest rate policy



It had been feared: Her forecast has clearly lowered the FED for the US-American Konkjunktur development last week. She corrected her appraisal of the American growth for 2011 about 0.4% and now expects only one value in the area from 2.7 to 2.9%. Now also the views for the next year are estimated clearly negative: Now instead of from a very strong increase of the economic situation up to 4.2% it is assumed from the fact that at most growth rates are accessible between from 3.3 to 3.7%. Especially critically the high unemployment extraordinary for American relations is still looked, particularly as an improvement of the situation is not really by view.

All observers assume from the fact that this more pessimistic judgement of the business development will have immediate effects on the monetary policy of the American central bank. Thus it is calculated on a leading interest increase by the FED at the earliest for 2012. The majority after the last meeting of the open market committee of the FED on last Wednesday to questioned big loan institutes expects this step even only in the second half of the next year. With it it has become very likely that the FED will still stick for a longer period to her low interest rate policy: The US-American leading interest amounts only between 0 and 0.25%. To this extremely low interest rate day money can be lent in interbank trade. At the beginning of the financial crisis, in December, 2008, this interest margin was settled to support the economy thus with a politics of the cheap money.

The central bank boss Bernanke also sees no inflation danger which could require an increase of the leading interest. He explained rather that the increase of the prices of food and energy is not long-lasting.