Market Analysis

the American economy needs stimulus, which provides a low base interest rate, even for some time, says the president of the Federal Reserve Bank (FRB) of Atlanta Dennis Lockhart. According to him, the U.S. economy begins to weak recovery.

The general situation in the U.S. economy is improving, but weakly, - quotes the statement Lockhart agency Bloomberg. - Federal Open Market Committee Federal Reserve System (Fed) announced his intention to keep rates low for a long time. I agree that this approach required.

The Fed chief Ben Bernanke said last week that the U.S. economy is leveled and can resume growth in the short term. Commerce Department figures published Wednesday, showed a maximum of more than 4 years increased sales new buildings in the country in July, suggesting the gradual restoration of the housing market.

My forecast assumes a return of U.S. GDP to restrain growth over the medium term, which will be weakened by several factors - Lockhart said. - Among them - the reorganization of the financial sector, as well as the need to increase savings homeowners. My prediction is that slow growth is in itself maintaining expectations of high unemployment for a long time.

Bernanke, who on Tuesday was formally nominated by U.S. President Barack Obama for a second term as head of the Federal Reserve, the Fed expanded the balance on the $ 1 trillion in connection with the provision of emergency financing for banks and credit markets, as well as lowered interest rates to the target range of 0 -- 0.25% per annum.

Fed is likely to consider the possibility of extending the program of redemption of debt obligations secured by mortgages, after its expiration in December of this year. Bank is also considering the plan purchase collateralized mortgage volume of $ 1.25 trillion issued by mortgage agencies.

This possibility will be discussed at upcoming meetings - said Lockhart. - At present I am inclined to maintain the approach to these programs, assuming that the volume of repurchase of securities will not be raised.

According to him, inflation is now little fear.

The companies are very few opportunities to influence the price level, - said the head of the FBI in Atlanta. - In the future, I think inflation will remain under control.

Consumer prices in the U.S. fell in July to 2,1% in annual terms, that became the maximum falling since 1950.

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