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Wednesday, August 24, 2011

Jackson Hole Summit to Help Boost US Economy



Jackson Hole Summit speech of Federal Reserve Board of Governors Chairman Ben Bernanke on Friday may hint at yet another monetary push to boost the slowing U.S. economy.



However, the Wall Street Journal reported most economists think that such suggestions at the annual conference of economists in this Wyoming resort �are overly optimistic.�



"Bernanke is unlikely to fulfill the markets' hopes that he will pave the way for a third round of asset purchases (QE3)," economists from Toronto's Capital Economics wrote in a note Wednesday that was reported in the Wall Street Journal. "And even if he did, QE3 is unlikely to boost the economy, equity prices or commodity prices by as much as QE1 and QE2 [did]."



At last year�s conference, Bernanke unveiled plans for a $600-million round of bond buying, which the Journal said he �essentially unveiled QE2.� The action triggered positive market reaction.



This year, markets will be listening closely to Bernanke�s words for any hint at a stimulus from the United States government. The New York Times reported that speeches from the Fed are made to �cause minimal market excitement - either good or bad� and previous announcements by the Fed suggest little change in policy.



Read full article HERE.



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