“We do not see a weak dollar ready to fall over … the Fed measures have avoided a long recession and we can start to see a recovery later this year.” If everything was as easy as these forecasts hold, then all this big problem will be solved with simple rate cuts … Is not it too simple? … I really think is a very simplistic reasoning (and linear), which are doing about the impact of interest rate cuts by the Fed on economic growth in the U.S. I have to remind you that the economy is not an exact science? It seems so. For now, I would remind you that the credit channel has not recovered in the U.S., and therefore, the effects of rate cut are not yet present. This is evident in the results of the survey of senior loan officers by the U.S.
Federal Reserve, announced on Monday that showed a sharp contraction in the willingness of banks to lend, either companies or individuals. This is not to say that the rate cut is not beneficial to the recovery of credit, but as I had told them on other occasions, monetary policy acts with a good backlog, which I understand to be greater in this case for the harm generated by the crisis in the financial system U.S.. And if I did not have many expectations about the U.S. economic recovery after Bernanke’s speech before the Senate, I must say that I have no expectations now. Get more background information with materials from Mark Berger Villa Healthcare.