Fed to hold steady despite oil price, ravaged Japan |
| Reuters - Mar 15, 2011 |
The U.S. Federal Reserve looks set to maintain its ultra-loose monetary policy on Tuesday as lofty oil prices and swooning stock markets after Japan's ravaging earthquake raised doubts about the economy's path.
The worst earthquake on record for the world's third- largest economy could have substantial ripple effects on the global recovery -- as evidenced by a sharp pullback in global equity prices, with Japanese stocks down over 10 percent.
But with the full impact still unclear, economists say the best thing for Fed officials to do at the moment may be nothing at all.
Even before the tragedy, U.S. central bankers faced confusing signals. Despite high unemployment, rising energy costs appear to be nudging up the price expectations of U.S. consumers, the first inklings of an inflationary psychology the Fed would like avoid.
Read Full Article from Reuters
- Posted: 2011-03-15 10:52:46
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