Federal Reserve, European Central Bank weigh options
Jeremy Hobson: If you were among those hoping for more economic stimulus from the Federal Reserve, I’m sorry to tell you that none is coming for now. The Fed announced yesterday that it is prepared to act if the economy gets worse — But for now, nada. Which brings us to the European Central Bank, which is holding a meeting today in Frankfurt and might have a little something up its sleeve for the global economy.
Marketplace’s Amy Scott reports.
Amy Scott: The Fed offered no new solutions to the lagging economy yesterday. But said it would do something if things gets worse.
Greg McBride is senior financial analyst at Bankrate.com.
Greg McBride: Without actually doing anything, what the Fed did was hint with a little stronger language that additional stimulus is very likely if the economy continues to languish in first gear.
Now attention turns to the European Central Bank. Its president Mario Draghi has promised to do whatever it takes to preserve the Euro amidst the ongoing debt crisis.
But Paul Dales with Capital Economics in London isn’t expecting a quick fix.
Paul Dales: What seems to be happening is that policy makers in Europe are jumping from one bandaid fix to another, so it seems like this is going to rumble on for some time.
Dales says the U.S. sends a relatively small share of its exports to Europe — about 13 percent. But he says the uncertainty is another dark cloud hanging over the U.S. economy.
I’m Amy Scott for Marketplace.
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