Relapses Credit crisis could stop the recovery of U.S. economy, warned Federal Reserve head Ben Bernanke. In the meantime, you can hope that the second call the crisis will not happen. The growth of consumer spending, increasing optimism in the economy and the level of sales in the housing market added confidence that the recession will end by the end of the year
From the recurrence of disease in the form of a financial crisis, no one is safe, including a strong economy and the world. If the crisis goes to the second round, the U.S. economic recovery will be postponed until better times. In recent days, the economic statistics of the country is trying to send positive signals. Main - did not frighten off.
The head of the Federal Reserve System (FRS) Ben Bernanke has warned that another blow to the financial system will cause decrease in the central bank forecast that the recession in the United States back in the year, and the economy begins to slow reconstruction, reported Bloomberg.
"Repetition (negative) financial conditions would lead to a significant drop in economic activity and could cause a shutdown beginning recovery" - he said, speaking before the Joint Economic Committee of Congress on Tuesday.
A little over a month ago, the head of the Fed said in an interview with the TV CBS, that the fate of the American economy depends entirely on the well-being of banks. If the Government will be able to restore the banking system, the economic downturn will be completed by the end of this year, said Ben Bernanke. Then the head of the Fed saw "some progress in the financial markets", and expressed cautious optimism, to specify that the end of a recession this year is a challenging task. In order to prevent a credit crisis, the U.S. administration has arranged for their leading banks stress test for survival. His initial results showed that 10 out of 19 tested banks will be requested to increase the amount of capital. According to regulators, this measure significantly weaken concerns about the creditworthiness of the financial sector.
Now the head of the Fed did not give any hints on the possible results of stress tests to be released May 7, but decided poostorozhnichat. Data from the market of credit default swaps and other indicators show that there remain real concerns about the banking industry ", - he said.
In addition, the head of the Fed, recently published data from the labor market shows a high probability of further significant reduction in the number of jobs and unemployment in the country in the coming months.
Parrots Congressman Ben Bernake said that the latest data confirm that the reductions in the economy may have slowed down, and they include some preliminary indications that the final demand, particularly demand from households may be stabilizing. " In addition, the housing market showed some signs of "achieving the bottom after three years of recession.
In this sector, the American economy statistics really captures some recovery. The index of pending transactions in the U.S. market of secondary housing (pending home sales) rose in March at 3.2%, according to data the National Association of realtors. Analysts did not expect to change this indicator from the previous month.
At the same time, the Ministry of Commerce's report, released Monday, showed an increase in spending on construction projects in March to 0.3%. "It's like a snowball, - noted Governor Morgan Asset Management Walter Hellwig. - All the recent published data are positive."
The rate of decline in housing prices in 20 major cities in the U.S. slowed in February for the first time since 2007. According to the index S & P / Case-Shiller, a fall in prices slowed to 18.6% year on year from 19% in January. This indicator falls every month since January 2007.
A slowdown in reducing prices is yet another signal the beginning of the stabilization of U.S. housing market, say experts.
The drop in the value of homes, the efforts of the Federal Reserve System (FRS) the USA, aimed at reducing rates on mortgages, as well as tax incentives offered to buyers of housing are likely to continue to support the demand for real estate. At the same time, the rise in unemployment suggests that the market recovery will not come quickly.
"We might come to the point of changing trends in the housing market" - the second Ben Bernanke is an economist JPMorgan Chase & Co. New York, Michael Feroli.
And more of a pleasant. The index of business activity in the services sector the U.S. (ISM Non-Manufacturing) in April rose to 43.7 points compared with 40.8 a month earlier item, reported Bloomberg referring to data the Institute of supply management (ISM). Experts had expected an increase this figure to 42.2 points. Prior to the cherished 50 points, above which shows an increase in business activity in services, remain very few.
"The economy is on the road to stabilization, - said the chief economist of Moody's Economy.com Aaron Smith. - Coming supported by the financial market is likely to have additional support to the level of consumer spending, but the recovery is unlikely to occur rapidly."
Previously, economists interviewed Wall Street Journal, brought the completion of a recession in the United States for one month, then it is an event for September. However, according to projections, only in the second half of 2010 economic growth would be sufficient to start reducing unemployment.
IFX.RU
From the recurrence of disease in the form of a financial crisis, no one is safe, including a strong economy and the world. If the crisis goes to the second round, the U.S. economic recovery will be postponed until better times. In recent days, the economic statistics of the country is trying to send positive signals. Main - did not frighten off.
The head of the Federal Reserve System (FRS) Ben Bernanke has warned that another blow to the financial system will cause decrease in the central bank forecast that the recession in the United States back in the year, and the economy begins to slow reconstruction, reported Bloomberg.
"Repetition (negative) financial conditions would lead to a significant drop in economic activity and could cause a shutdown beginning recovery" - he said, speaking before the Joint Economic Committee of Congress on Tuesday.
A little over a month ago, the head of the Fed said in an interview with the TV CBS, that the fate of the American economy depends entirely on the well-being of banks. If the Government will be able to restore the banking system, the economic downturn will be completed by the end of this year, said Ben Bernanke. Then the head of the Fed saw "some progress in the financial markets", and expressed cautious optimism, to specify that the end of a recession this year is a challenging task. In order to prevent a credit crisis, the U.S. administration has arranged for their leading banks stress test for survival. His initial results showed that 10 out of 19 tested banks will be requested to increase the amount of capital. According to regulators, this measure significantly weaken concerns about the creditworthiness of the financial sector.
Now the head of the Fed did not give any hints on the possible results of stress tests to be released May 7, but decided poostorozhnichat. Data from the market of credit default swaps and other indicators show that there remain real concerns about the banking industry ", - he said.
In addition, the head of the Fed, recently published data from the labor market shows a high probability of further significant reduction in the number of jobs and unemployment in the country in the coming months.
Parrots Congressman Ben Bernake said that the latest data confirm that the reductions in the economy may have slowed down, and they include some preliminary indications that the final demand, particularly demand from households may be stabilizing. " In addition, the housing market showed some signs of "achieving the bottom after three years of recession.
In this sector, the American economy statistics really captures some recovery. The index of pending transactions in the U.S. market of secondary housing (pending home sales) rose in March at 3.2%, according to data the National Association of realtors. Analysts did not expect to change this indicator from the previous month.
At the same time, the Ministry of Commerce's report, released Monday, showed an increase in spending on construction projects in March to 0.3%. "It's like a snowball, - noted Governor Morgan Asset Management Walter Hellwig. - All the recent published data are positive."
The rate of decline in housing prices in 20 major cities in the U.S. slowed in February for the first time since 2007. According to the index S & P / Case-Shiller, a fall in prices slowed to 18.6% year on year from 19% in January. This indicator falls every month since January 2007.
A slowdown in reducing prices is yet another signal the beginning of the stabilization of U.S. housing market, say experts.
The drop in the value of homes, the efforts of the Federal Reserve System (FRS) the USA, aimed at reducing rates on mortgages, as well as tax incentives offered to buyers of housing are likely to continue to support the demand for real estate. At the same time, the rise in unemployment suggests that the market recovery will not come quickly.
"We might come to the point of changing trends in the housing market" - the second Ben Bernanke is an economist JPMorgan Chase & Co. New York, Michael Feroli.
And more of a pleasant. The index of business activity in the services sector the U.S. (ISM Non-Manufacturing) in April rose to 43.7 points compared with 40.8 a month earlier item, reported Bloomberg referring to data the Institute of supply management (ISM). Experts had expected an increase this figure to 42.2 points. Prior to the cherished 50 points, above which shows an increase in business activity in services, remain very few.
"The economy is on the road to stabilization, - said the chief economist of Moody's Economy.com Aaron Smith. - Coming supported by the financial market is likely to have additional support to the level of consumer spending, but the recovery is unlikely to occur rapidly."
Previously, economists interviewed Wall Street Journal, brought the completion of a recession in the United States for one month, then it is an event for September. However, according to projections, only in the second half of 2010 economic growth would be sufficient to start reducing unemployment.
IFX.RU
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