24/Apr/2014 - Last News Update: 22:00

US Federal Reserve's Ben Bernanke to face press

Category: Business

Published: 27th Apr 2011 16:56:17

The Federal Reserve will reveal its latest interest rate decision later, before chairman Ben Bernanke holds his first press conference.

Mr Bernanke will outline the views of central bank's board members on rates as well as give his overall outlook for the US economy.

He is also likely to give an indication of when the bank will begin withdrawing its monetary stimulus.

Investors around the world will be watching his words closely.

The market is expecting rates to remain at a record low of zero to 0.25%, where they have been since December 2008.

Mr Bernanke is also likely to stress the need to withdraw the Fed's support to the US economy, through a policy known as quantitative easing, in a slow and orderly manner.

The introduction of regular press conferences by the chairman of the Fed is seen as a way for the bank to address directly criticisms of its handling of the financial crisis, and even its inability to prevent it in the first place.

The US economy grew by an annualised rate of 3.1% in the final three months of last year, but some economists expect the rate of growth to have slowed in the first quarter of this year.

The January to March GDP figures are published on Thursday.

The US unemployment rate is also falling, and hit a two-year low of 8.8% in March. However, inflation jumped sharply last month to 2.7%, largely due to big rises in food and petrol prices.

This mixed picture means the Fed is unlikely to raise rates, which could undermine the country's economic recovery.

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2011. US Federal Reserve's Ben Bernanke to face press [Online] (Updated 27th Apr 2011)
Available at: http://www.ukwirednews.com/news/149350/US-Federal-Reserves-Ben-Bernanke-to-face-press [Accessed 24th Apr 2014]

News In Other Categories

  • Ed Miliband takes on zero-hours contracts

    The zero-hours contract - alongside the payday loan and the bad bank - has gained a kind of totemic significance in the public imagination.
  • Raids follow BBC 'stolen phone' undercover probe

    Police have carried out a series of raids in east London, following a BBC London investigation into shops willing to deal in stolen smartphones.
  • Peter Jackson changes third Hobbit film title

    Director Peter Jackson has changed the title of the final film in his Hobbit trilogy from There and Back Again to The Battle of the Five Armies.
  • Peter Jackson changes third Hobbit film title

    Director Peter Jackson has changed the title of the final film in his Hobbit trilogy from There and Back Again to The Battle of the Five Armies.
  • Amazon revenue up but offset by increasing expenses

    Internet retailer Amazon reported a 32% jump in profits to $108m (£64m) in the first quarter of 2014.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com