Koyal Group Federal Reserve Policy Review Committee Releases Statement

Top Quote Steven Alexander, Chairman of Koyal Group's Fed Policy Review committee has identified a number of reasons why tapering will not begin this month and Syria is not one of them. He believes there has not been enough inflation and the US reaching its debt limit will postpone it. End Quote
  • (1888PressRelease) October 22, 2013 - San Francisco Federal Reserve Chairman John Williams said on Monday that the lack luster employment data for August will not affect when the Fed will decide to begin tapering its $85 million a month bond buying program. There were 169,000 jobs created, which fell short of expectations. Koyal Group analysts believe that the US needs to create at least 200,000 jobs a month to keep pace with economic growth. Steven Alexander of Koyal Group's Federal Reserve Policy Review Committee has identified a number of factors that he believes will postpone tapering until at least December.

    Mr Alexander first reason for believing the Fed will not begin tapering this month is that there has not been enough inflation. Quantitative easing is meant to raise inflation; he thinks that the Fed should be trying to increase quantitative easing as opposed to tapering it. Mr Alexander believes that when tapering actually does begin inflation rates will sky rocket causing a significant decline in the American stock and housing markets.

    Another factor that he sees postponing tapering is that the United States will hit its debt ceiling again in the middle of October. The outstanding debt in the US is $16.75 trillion, when you take into account US funded liabilities, such as Medicaid and Social Security, the figure is about $140 trillion. Gross domestic product is less than $16 trillion, so the total US debt is much bigger than the actual size of the economy. The rate at which US debt is increasing has not slowed either, increasing an average of $1.98 billion per day since September of last year.

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