Ben Bernanke outlines strategy to withdraw US stimulus
Published: 10th Feb 2010 19:45:40
The chairman of the Federal Reserve, Ben Bernanke, began on Wednesday to outline the central bank's strategy for withdrawing its stimulus money.
During the crisis the Fed greatly expanded the credit available to banks to encourage lending, and the new measures would reverse that.
But he stressed any changes were still months away to prevent jeopardising the weak recovery.
When and how to withdraw support is a major concern for leading economies.
One suggestion for reducing the money supply included in Mr Bernanke's statement to a Congressional committee was to pay the banks a higher interest rate on certain deposits at the Federal Reserve.
That then should lead to tighter credit conditions and higher interest rates.
The theory is based on the view that banks would then leave more of their money at the Fed because of the higher returns on offer - making it less attractive to lend out to businesses and consumers unless they, too, paid a higher interest rate to match the Fed's.
Months from action
Mr Bernanke said the proposals would only be implemented if the right economic and financial conditions were in place.
He said the economy still needed propping up with record low interest rates.
Since the 1980s, the Fed's main lever for controlling lending conditions has been the Federal Funds rate. That rate is now at a record low near zero.
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Harvard CitationBBC News, 2010. Ben Bernanke outlines strategy to withdraw US stimulus [Online] (Updated 10th Feb 2010)
Available at: http://www.ukwirednews.com/news/36254/Ben-Bernanke-outlines-strategy-to-withdraw-US-stimulus [Accessed 23rd Aug 2014]
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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
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Two men have been charged following the death of an Afghan migrant found in a container at Tilbury docks in Essex.