The U.S. Federal Reserve should embark on an "open-ended" program for quantitative easing to enhance development and growth in the U.S. as the global economy show signs of slowing, the president of the Federal Reserve Bank of Boston said during an interview with CNBC.
Eric Rosengren said that the central bank of the U.S. should expend efforts on purchasing additional mortgage-backed securities while also establishing guidance based on the economic outcome it is pursuing.
"What I would argue for actually is to have it open-ended, that we focus on economic outcomes," Rosengren told the news source. "It would be setting a quantity that you're going to continue to buy until you get the economic outcomes that you want."
With the July jobless rate remaining at 8.3 percent as it was this past January, Rosengren said more intervention is necessary. He said the global slowdown in which the nation presently finds itself advocates for another quantitative easing program.
China, host of the globe's second largest economy – behind that of the U.S., is poised to recover from its economic hiccups as indicated by economic data the Asian nation is set to release later this week, Reuters reports.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
