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Dudley: raise interest damaging to the US economy
10/17/2015 0:00
BAGHDAD - morning
continuing global US Federal follow-up (the US central bank (on its decision to raise interest or continue to deal with the current situation in force since the economic crisis of 2008, which is not to impose any benefit.
In this regard «William Dudley» said yesterday Friday, commenting on retail sales, which recently released data, retail sales saw a vulnerable, and that there is a state of uncertainty about how the employment data recently released, the interest rate decisions in the US Federal.
The Fed member Dudley that recent data show a slower pace of growth Economic in the United States, and pointed out that the concerns of the status of China increases the uncertainty of future US Federal aspirations, especially since the business inventory and trade data show expectations of a decline in economic growth.
and noted Dudley that there are more than expected from now the economic data until the end of this Year 2015, stressing that the rate rises too early or too late will carry significant economic risks, and this is what puts the US Fed is currently in a critical situation.
As for the use of tools other than interest, «Dudley» confirmed that it is unlikely that the US Federal buy foreign sovereign bonds.
and can be expected through the permit Dudley in the folds of his words that the Fed wants to raise interest so as not to fall victim to economic problems may arise due to keep interest rates at very low levels for long periods of time. But at the same time, the Fed would like to risk raising interest and thus cause damage in the current economic growth, and this may indicate that the Fed may need some time to get more data to take a decision to raise interest rates.
The US dollar rose during trading on Thursday after US release of the data to make up a large part of its losses witnessed since the beginning on Thursday, which reached its lowest level in two months.
The dollar index, which tracks its performance against a basket of major currencies rose to its highest level at 94.54 after the session opened on Thursday at 93.93 before the lowest level in two months at 93.78 to currently trade at the level of 94.45.
USD strength came after the CPI data and unemployment benefits for the US economy, where the data returned some confidence to traders on the dollar because it showed continued stability in the US economy.
subsidies US unemployment fell to their lowest level in more than four decades, which points to continued strength in the US labor market despite the negative data witnessed by the recent US jobs report for the month of September. For more details about the subsidies the US unemployment
As for the consumer price index and the point of view of the Federal Reserve showed that weakness in inflation comes because of lower energy and fuel prices as a result of the decline in crude oil prices, and in light of the rise in core inflation, which excludes these factors.
This increase in Dollar levels after a sharp drop on Wednesday after the retailer for the US economy sales data declined in addition to lower inflation rates from the point of producers of view given the decline in prices of raw materials and commodities used in production.
One of the main reasons why Fed to Ilja to raise interest the dollar's strength as he tries to control a certain level is required for the power of the dollar and it is known that he was seeking to install this level quo in terms of high value of the dollar, would adversely affect the exports hence the GDP of the United States.
It is well known that the first dollars were Sikh in the United States pursuant to the US Constitution for the year 1792 was the equivalent of Spanish dollar, which was trading in the Americas at the time.
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