The US Federal Reserve Chairman Ben Bernanke addresses independent Community Bankers of America (ICBA) 2011 National Convention in San Diego, California, 23. March 2011.
Credit: Reuters/Mike BlakeBy Mark felsenthalWASHINGTON, DC | Tue Apr 27, 2011, 1: 09 am EDT
WASHINGTON (Reuters)-the US Federal Reserve Chairman Ben Bernanke on Wednesday will be likely to use its first ever Conference on monetary policy to hammer home a case of patient access to the withdrawal of the Central Bank has extensive support for the US economy.
After two days of negotiations on the policy of the Fed, Bernanke face the press in the first regular news conference the Fed Chairman in history 97-the Central Bank.
He is expected to take the opportunity to gain a consensus view on the Central Bank is still that the economy needs the support of the Fed's monetary policy. That consensus had a series of hawkish Fed officials to the US Central Bank may have to wait too long to raise interest rates.
The Fed lags behind other central banks tightening of financial conditions. The European Central Bank reference rates earlier this month, a step that helped the dollar got a minimum of 16mesíc against the euro on Tuesday.
By contrast, the Fed's Federal open market Committee setting, in a declaration due at about 12: 30 pm (1630 GMT), is expected to suggest it will be his $ 600 billion of bonds-purchase programme to continue until the end of June the planned closure. It is also expected to stress that it will keep interest rates artificially low "for a long time."
"The meeting of the FOMC doesn't land in nature, but Bernanke will provide a new venue to demonstrate the Dove, control," said Eric Green TD Securities.
The command will be the Fed Bernanke's historical osidlovali of the press conference at 2: 15 pm (1815 GMT).
BERNANKE'S BALANCING ACT
Journalists are likely to press Bernanke exceed the weighty Declaration by the Central Bank offer a greater overview of when and how the Fed might begin to tighten policy.
The Fed chopped benchmark short-term rates close to zero in December 2008 and then bought a $ 1.4 trillion in mortgage-related longer-term debt securities State and lift the economy from a deep recession.
When recovery is flagged last year, the Fed began its latest round of buying bonds.
Fed officials voice consensus view--for example, the Vice Chair Janet Yellen and the New York Fed President William Dudley-we defended monetary support as important medicine for the economy, with unemployment at 8.8%.
Bernanke is unlikely to offer any timeline for hikes, he may provide insights into the latest thinking in how the Fed's tightening of policy officials, it will be.
Last year, said that the first step to ending would be likely to increase in the rates. However, some officials have recently urged that the bonds sell first.
It is expected that the Central Bank statement design leaders see recovery, although it was a slow growth in the first quarter of the year.
At the same time, the Fed is expected to have led to concern about the high level of unemployment and reiterated that the pressure on inflation farmársky commodity prices reveals that the ends.
It would give the Fed's scope to continue breastfeeding recovery with her easy monetary policy.
"Baseline view the Fed is that rates will not rise for a long time," said Michael Gapen Barclays Capital. "I just don't want a precommit and reducing flexibility."
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