Sunday, September 9, 2012

Weak U.S. economy may force Bernanke to take action

A majority of analysts expect the Fed at its meeting Thursday will announce support acquisitions to boost the U.S. economy.

The continued weakness in the U.S. data is likely to force the Federal Reserve to initiate another round of bond purchases with the aim of forcing borrowing costs down and boost the U.S. economy.

So says the majority of analysts, despite widespread opposition from political and internal disagreement in the bank.

The U.S. economy created only 96,000 jobs in August - fewer than expected, while a key weapon in the hands of Republicans who use the bad figures in the struggle for power in the United States. For that reason, especially Republicans oppose intervention by the central bank.

The bank's chairman, Ben Bernanke hinted at the recent announcement that there might be something on the way by calling the developments in the job market "deeply worrying".

Bernanke is also under considerable political pressure as Republican presidential candidate Mitt Romney, has said that he first did not believe that the Bank's support acquisitions will help, and that he has no plans to reappoint Bernanke to the post if he wins the election.

The Bank publishes its decision Thursday.

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