Forex news, dollar rate. “Economists believe that a combination of high taxes and cutting costs is the best way to reduce the deficit of US federal budget,” writes Associated Press, making reference to the study of economic policy held by American National Association for Business Economics, which has been published today.
The study shows that interest rates will remain close to their current level for one year at least.
According to economists, US Federal Reserve System will no more have to buy government bonds in order to support and stimulate economy, as it used to do for several last years, despite the effectiveness of such approach. They suppose that in case of economic growth acceleration, FRS will have to buy bonds at least till the end of the year.
FRS started buying government bonds after financial crisis in 2008 as an attempt to lower long-term interest rates and to provide rapid economic growth, and today the head of American Central Bank Ben Bernanke signals about new actions and liquidity injecting that would guarantee saving extremely low interest rates.
Budget deficit is experiencing the growth of over 1 trn. euro fourth year in a row. Budget hole expands at the time of Great Recession, when tax revenues collapsed after millions of Americans lost their jobs and companies’ reduced.
87% respondents of the poll have stated that they will consider rising taxes with smaller expenses to reduce federal budget deficit. Over 70% would like a tax reform to be implemented.
Economists have split almost in equal parts concerning the implementation of "Buffett rule" after a legendary investor Warren Buffett said that the average tax rate on over $ 1 mln. income is supposed to be not less than 30%.
Over two thirds have declared for expanding tax incentives in 2012.
As explained by the Analytics Team of , the chart of dollar index at forex market shows a full-scale FRZ Н8
ТО 1.6647 of Н8, а(С)/С down from TO
NK 1.6740/1.6647
pivot 1.6605, possibly в(С)
1.6461 = 62%
1.6443 = 123%
1.6408 = 138%
trend extension downwards
rising reversal А that would break NK and pivot is needed
