Jason Schenke, President of Prestige Economics, assumes that the US GPD will grow only by 1.5-2% instead of a 3-4% increase. He says this doesn’t mean that Ben Bernanke will start another round of quantitative easing. A much considerable decline is needed to trigger QE3.
During yesterday’s speech in Atlanta, Mr. Bernanke said that in order to insure the stability of the financial system a high level of personal capital is needed. The Fed Res Chairman is determined to hold more stress tests in order to find out the weak spots of the country’s financial system. He warned that in case of another major economic crisis (like the one we saw in 2008-2009) the Fed Res won’t have any tools to combat it.
In the meantime, yesterday the USD index stayed flattish within the 78,80-80,38 range. experts assume that the rally will resume if the price breaks above 80,32 and makes an upward FZR. A mid-term trend reversal will take place as soon as the price breaks and consolidates below 78,95.
