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WASHINGTON - Federal Reserve Chairman Ben Bernanke intensifies its defence $ 600 billion plan binding of Council of Treasury-purchase the Federal Reserve, say that the economy still struggling to become "standalone" without the assistance of the Government.

In an interview recorded with "60 minutes CBS" aired on Sunday night, Bernanke also argued that the Congress should not cut spending or raise taxes given the fragility of the economy remains.

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The President of the Federal Reserve said think another recession is unlikely. But he warned that the economy may undergo a slowdown in high unemployment dampens consumer spending.

Interview is part of a large counter-offensive Bernanke leads against critics of the plan purchase link the US Federal Reserve announced on 3 November. The purchases are intended to lower rates of interest in the long term, to raise the stock price and encourage more spending to stimulate the economy.

Criticism from Republicans in Congress of the US Federal Reserve officials say they fear that intervention the Fed could stimulate inflation and speculative on Wall Street purchases while doing not much of the economy.

Other issues of "60 minutes", Bernanke interview:

A sustained unemployment would have been much higher-"something as it is in depression, 25 percent"-had the Fed not provided special assistance to Wall Street firms, banks and other companies to facilitate a credit crunch. Said it could take four or five years more unemployment, to 9.8% in the fall to a historically normal 5% or 6%. A reiterated that the Fed is ready to buy even more than 600 billion in bonds of the Treasury Board for eight months, if it decides that the economy has need fuel to lower interest rates. Sustained A risk of inflation is an exaggeration. Bernanke has said he is "100 %" confident that the Fed will be able to push inflation, when the time is right, by increasing interest rates and the conduct of its exciting programs. Called the risk of deflation - a decrease in prices, wages and extended values of stocks and houses - "pretty weak". He said that likely would have been already if the Fed did not maintain super-low interest rates. Urged A Congress in order to improve the nation's tax code "closing the gaps and decreasing rates" for individuals and businesses. He said so doing create a greater incentive for people to invest.

In the interview with no material be broadcast CAs, but was later posted online in the form of video, Bernanke reiterated his opinion that artificially low Chinese currency is "bad for u.s. economic" because it hurts our trade

It is not useful for China, which, he said, because it makes it more difficult for managers of Beijing policies keep China's economy and inflation, overheating.

Critics fear that binding of the Federal Reserve purchases are increasing inflation risks have complained that purchases mean that the Fed is, indeed, printing more money. In the interview, Bernanke called that a "myth." He stressed the Fed does not print money when buying Treasurys and said the program expand the amount of money in circulation "significantly."

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Lou Crandall, Wrightson ICAP Chief Economist said that Bernanke is just that purchases the Fed does alter significantly the amount of money circulating in the economy. This is mainly because banks are not ready for most of the money they already hold in reserve. When the Fed buy Treasurys, it increases reserves in the banking system. These reserves actually "creating" money, banks would they lend.

Yet, Crandall suggested that bond purchase programme creates the appearance of money printing, something which could establish the credibility of the Central Bank into play.

Appearance Bernanke Sunday evening is part of a Flash of public relations, that it is mounted since the reserve US Federal announced program on 3 November. Private and public appearances, Bernanke has sought to explain and defend the regular programme Americans, investors and regulators on Capitol Hill.

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His efforts have included an op - Ed article in the Washington Post and discussions with students in Jacksonville, Florida, economists Jekyll Island, GA, businessmen in Columbus, Ohio, Governors of the Central European banks and members of the Banking Commission of the Senate.

Criticism comes from home and abroad. Responsible for China, Germany, Brazil and others said that the Fed is a scheme to u.s. exporters a competitive advantage by keeping the value of the weak dollar. Weak dollar makes goods less expensive u.s. products abroad and more expensive foreign to the United States.

It is rare for a Fed Chairman to give an interview for broadcast or print session. But it was Bernanke's second appearance on "60 minutes." His first was in March 2009. At that time, he knows the anger on Wall Street orchestrated and rising anxiety about the economy.

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In an interview broadcast Sunday, Bernanke pointed out that the economy is growing at an annual rate of approximately 2.5% - too slow to reduce unemployment. For a self-sustaining recovery, consumers and businesses should spend more, so the economy could grow faster.

Bernanke said he hoped that binding of the Federal Reserve purchase program will allow to lift stock price. This is partly because the decline in the yields of bonds would cause some people to move money into stocks.

Stock prices would increase wealth and trust of individuals and businesses. Expenditure increase lifting revenues, profits and economic growth. Bernanke has referred to this as a "virtuous cycle".

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But when asked at the interview if the recovery is autonomous, Bernanke responded: "it may not be." It is very close to the border. ?

In view of the still-low economic growth, he said: "We are not very far from being the level where the economy is not self-sufficient."

Copyright 2010 the Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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WASHINGTON — Republican Representative Ron Paul Thursday said he will push to examine the decisions of the Federal Reserve monetary policy if it takes control of Subcommittee of Congress who oversees the Central Bank as planned in January.

"I think they are too much indépendants.Ils should not enough power,"Paul, a criticism for a long time the Fed said in an interview with Reuters.""

Paul is currently the top Republican page on the Subcommittee of the House Financial Services Committee oversees the domestic monetary policy and is probably at the head of the Commission when Republicans took control of the House of representatives in January.

That could create a giant headache of the Fed, which earlier this year affirmed offshore effort led by Paul opening its internal deliberations on rates of interest and monetary easing a scrutiny of the Congress.

Paul was also a fierce critic of the efforts of the Central Bank to boost the economy by monetary policy.

"It is outrageous, what is happening and the Congress more or less did not say much about it," he said.

Paul said that the Subcommittee would also push to examine the reserves of the country and to highlight the views of economists who believe that economic slowdowns caused by bad monetary policy, not the whims of the free market.

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Dow Jones in stir-fry to a maximum of two fresh years, earning more than 170 points - or 1. 5pc - 11,386 - yesterday it 0. Pink 2pc after the Fed describes his plan link purchase. The broader S & P 500 gained 1. 3pc and technology-rich Nasdaq was increased by 1. 2pc.

US retailers reported strong sales in October and has helped to lift shares with gap until early commercial 7pc 4pc Macy.Preuve U.S. shoppers were more spending on traders assisted clothes get rid of an increase in the number of new claims for unemployment higher than expected.

Actions around the world was supported by the decision of the Federal Reserve to introduce quantitative easing most of creating more money and to increase the supply of money in the economy - which will need to buy $grant to Treasury bonds a month until next June.

"We believe QE2 will be more efficient that investors realize," Andrew Garthwaite, London head of global strategy for equity Credit Switzerland wrote in a report."Remain us overweight actions."

Positive feelings have lifted the other major awards European and Asian .the ' Germany DAX rose 1 65pc, CAC-40 France 8pc 1 and 2 2pc, despite pressures on exporters the dollar fell below the level of yen 81.Hong Kong Hang Seng added 1 6pc and Shanghai Composite Japan Nikkei China closed until 1 9pc to a maximum of seven months of 3,086.94.

Although the prospect of more money into the financial system has been a boon for stocks, dollar tombé.Le dollar is at its lowest level since December 2009 against a broad basket of currencies and secured against this index Thursday 1pc.

Finance Ministers in emerging as China and the Brazil criticized the Fed stimulus plan and said that additional supply of dollars of investment could lead to bubble in their country.

Sterling is increased to its highest in nine months against the dollar - briefly striking $1.63 - Thursday after the Bank of England held the interest rate and unlike conserved United States its programme for the purchase of goods organize according to the economic recovery signs United Kingdom is on the right track.

The pink 1pc of euro against the dollar as investors has increased tolerance to risk on inflation and growth forecasts in the euro area after the departure of the European Central Bank reference interest rates unchanged as expected.

In London, rising stock prices was assisted by a 6 1pc miner BHP jump, partly due to the decision of the Federal Reserve and the rest the outcome of the Canada block its $remained hostile to group potash fertilizer.

Other minor grew strongly and with the rise of Natural Resources, Xstrata, Kazakhmys and Rio Tinto between 5 1pc and 6 9pc.

Good new business has also helped the man mounted 14pc sentiments.Groupe upwards classification FTSE after that most large listed company hedge funds world beats its own first half profit forecasts and announces the resumption of the assets of the client.

The firm, which saw eight straight quarters of net, said customer assets rose to $40. 5bn at the end of September. against estimates of $39. 5bn in September.

Unilever, the consumer goods group increased by 5 3pc after an optimistic statement in its ability to raise prices and to reduce the cost of commodity prices higher that it corresponded forecasts with a counter rising sales of third quarter.

"Consensus beating results continue to be favourable to the market with the authorities in fact appear to be prepared ready and able to support the economic recovery, which is good news", Henk Potts, Barclays Wealth, equity strategist said.

The rise is tempered by a 4 6pc fall at Rolls Royce after Qantas Airways flights suspended its fleet of Airbus A380 after the failure which led to an emergency landing at Singapore Rolls-Royce Trent 900 engine.

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Index of London actions increased 109.79 or 1. 9pc to stock early milestone 5,858.76 join worldwide stock rally after the Fed said it would buy $600bn (￡ 371bn) in a further attempt to revive the flagging economy U.S. Government obligations.

CAC - 40 the France increased 2 1pc and acquired Japan Nikkei 2 2pc, despite the pressures on exporters as the dollar fell below the level of yen 81 Germany's DAX rose to 1 2pc.

Hong Kong Hang Seng added 1. 6pc and Shanghai Composite China closed until 1. 9pc to a maximum of seven months of 3,086.94.

New York, Wednesday, the Dow Jones industrial average rose 26.41 points, either 0 2pc, 11,215.13, nearest within two years after the Fed describes his plan link purchase.

"We believe QE2 will be more efficient that investors realize," Andrew Garthwaite, London head of global strategy for equity Credit Switzerland wrote in a report."Remain us overweight actions."

In London, rising stock prices was assisted by a jump in miner BHP, 3pc 4 part of the decision of the Federal Reserve and the rest the outcome of the Canada block its $remained hostile to group potash fertilizer.

Other minor grew strongly and with Xstrata, riches, Anglo American and Rio Tinto totalling between 3 8pc and 4 8pc.

Good new business has also helped man mounted 7 1pc sentiments.Groupe upwards classification FTSE hedge funds listed largest worldwide firm beats its own first half profit forecasts and announces the resumption of the assets of the client.

The firm, which saw eight straight quarters of net, said customer assets rose to $40. 5bn at the end of September. against estimates of $39. 5bn in September.

Unilever, the consumer goods group increased by 5 6pc after an optimistic statement in its ability to raise prices and to reduce the cost of commodity prices higher that it corresponded forecasts with a counter rising sales of third quarter.

"Consensus beating results continue to be favourable to the market with the authorities in fact appear to be prepared ready and able to support the economic recovery, which is good news", Henk Potts, Barclays Wealth, equity strategist said.

The rise is tempered by a 2pc 3 fall at Rolls Royce after Qantas Airways flights suspended its fleet of Airbus A380 after the failure which led to an emergency landing at Singapore Rolls-Royce Trent 900 engine.

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NEW YORK – Stocks traded in a tight range Wednesday as investors turned their attention to the Federal Reserve after there were few surprises in the midterm elections.

The Dow Jones industrial average fell 26 points in midday trading, but still near its highest closing level in more than two years. Broader indexes also fell slightly.

By the end of the day, investors will likely know exactly how much the Fed plans to spend to stimulate the economy. The central bank has hinted for two months it plans to buy Treasurys to drive interest rates lower in an attempt to spark lending and spending. However, there was still plenty of debate about the size and length of the program, particularly in the past few days.

Lawrence Creatura, a portfolio manager at Federated Investors, said the market has factored in expectations that the Fed will buy $500 billion or less of Treasury bonds. A bigger program would most likely drive stocks higher, though there is a small possibility it could spook investors' views about the health of the economy, Creatura said.

The Fed is expected to announce details of its plan when it wraps up its meeting Wednesday afternoon. Treasury prices rose slightly, sending interest rates lower ahead of the announcement.

The Dow started with slight gains before drifting lower. It was down 26.41 or 0.2 percent at 11,162.31 in midday trading.

The Dow has been flirting with its highest closing level of the year, which was 11,205.03 on April 26. If it can close above that level, it would be the Dow's best finish since September 2008, just before the financial crisis peaked.

The Standard & Poor's 500 index fell 3.86, or 0.3 percent, to 1,189.71, while the Nasdaq composite index fell 12.09, or 0.5 percent, at 2,521.43.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.54 percent from 2.59 percent late Tuesday.

Key economic reports that would have normally affected trading are being overshadowed by the Fed's meeting.

Payroll company ADP said private employers added 43,000 jobs last month after cutting jobs in September, which usually would have driven buying in the market. The report is seen as a gauge heading into the government's monthly employment report, which is due out Friday. ADP indicating a rise in employment bodes well for the government saying private employers ramped up hiring, at least somewhat, last month.

The Institute for Supply Management said growth in the service sector accelerated last month when economists were expecting a slowdown in the pace of expansion. That too would normally have provided stocks a lift.

The ISM report is closely watched because the service sector accounts for about 80 percent of the nation's jobs. Earlier this week, ISM said the growth in the manufacturing activity also accelerated last month.

There were no major surprises in Tuesday's midterm elections that should sway trading Wednesday. Analysts said the market had largely accounted for Republicans taking control of the House of Representatives and Democrats holding onto a slim margin in the Senate.

Over the longer term, investors will want to see more clarity from Capitol Hill about taxes and the costs of health care and financial regulatory reform bills that passed through Congress earlier this year.

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Index figures of the most recent purchase managers, indicating higher confidence in the UK manufacturing sector have been completely ignored. Bond investors continue to look forward with greater certainty of a slow or zero-growth, future where interest and inflation rates remain discrete for years to come. He arrived before - very low yields of inflation and binding persisted for decades in the past - so why not yet?

Yet it is not fair opportunities for a decade lost Japanese-style Feed troughs records obligations yields.Prediction of more ve - that central banks flood the economy with money by buying a government - debt creates a daytime rates spiral ever tomber.Il is an accident waiting to happen.

But decision-makers seem determined to move forward with QE2.Mercredi, the Fed should punish another $500bn (￡ 312bn) bond purchases. Despite vocal objections of at least four members of the open markets, Ben Bernanke, the Chairman has indicated a desire to keep pumping money into the economy more or less indefinitely based that core inflation is unambiguous again on the rise and unemployment is falling.

It seems rather likely that the Bank of England will do the same, but you never know. A member of the CPC, Adam Posen, requiring another ￡ 50 billion of purchases of goods, while Mervyn King, Governor of the Bank has expressed concern about managed money growth, and a majority of the CPP appears slowly to the idea.If not this month, then perhaps next.

There are essentially three reasons to worry about this latest outbreak of monetarism Voodoo.It seems neither necessary, nor is it likely to be effective and there are risks importants.Si QE fails these tests, then policy-makers should not be done.

There is already an agreement at the United States you both indicates increasing State the countries likely to become even worse after today provided drubbing for Democrats in the mid-term - on elections - political paralysis policy underlying economic merits.

Denied the political leadership needed to remove the economy of the bog, fed employs the only thing left in the Toolbox to restart jobs in the private sector - even lower interest rates.It is difficult to see why - with some real interest rates already in negative territory - a slight reduction in additional would make any difference.

If it were possible for households and small businesses access to very low levels and relieve themselves of their debt burden of doing, then perhaps some advantages économiques.Mais course they cannot.In the real economy, wear remains the order of the day. It is only Governments and large companies can benefit.

But this EQ certainly does not create an incentive for everyone to stack aboard the procession of the purchase link. If the Fed is to acquire next year half expected issuance of Treasury paper, it represents something of a one-way bet, prospects independently long-term inflation and rates.

The purpose of EQ is - leading low interest - rates for creating an effect deterrent to save in the hope that businesses and households could consume more or invest in assets risk more élevés.Paradoxalement, the very opposite can occur.

Funds are still flowing back into the obligations of the Government in record quantities, for if you are familiar with central banks will continue to support the price, then there are incentives to use acheter.Investissement and the private sector is proportionally harmed.The phenomenon also resulted in a resumption "search performance", which creates further example, bond prices anomalies.Par business have been a major beneficiary Sprint for debt.

A positive effect has been to enable firms to refinance at very low rates of interest, which helps turn Apr banks.This is how QE is supposed fonctionner.Pourtant if these rates very low tip into a depression, then you would expect failures of firms to increase again once that the current growth spurt has run its course.Many bonds businesses are therefore be mispriced.

Similarly, if the Fed is successful in generating inflation QE, then logically these low rates shouldn't American Federal Reserve existent.La seems to want it both ways - low bond yields and higher inflation.Only in Alice in Wonderland country it would be possible.

There is always the possibility the inverse bond markets got that right - it will be the contraction of the economy and prices of goods, services and other assets is soon be dégonflant.Mais which only adds to the suggestion that far to help the situation, more QE be worse.

In all cases, there is little evidence of deflationary scarecrow here at the United Kingdom and even to United States, the problem can be one of the diagnosis established. unemployment structural high, that the United States are more unused to, is not the same thing as deflation.

As for the United Kingdom he became still more difficult to justify more QE.Croissance's nominal GDP is where it should be, production resumed after flexible patch of the summer, the velocity of money is recovering rapidly and are rising inflationary expectations.

It is quite a leap to believe that this relatively encouraging position will be completely reversed in the next year or two by the reduction in budgetary venir.Certes, the Bank of England will be struggling to convince it that said the report of the inflation of the week is prochaine.à participate more QE would react to a still unquantifiable growth risk.

Hazards, on the other hand, further inflate a bond market strike already underlying fundamentals are all too apparent.

Assuming that no default value, and gilt destroy never fully capital, in the same way sometimes occurs fairly .but, inflation can seriously affect, and once the markets suspect that the genius of inflation is out of the bottle, the damage is always fast and devastating.

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WASHINGTON - Consensus is built at the Federal Reserve of a new program for pumping the economy through the purchase of the Treasury, obligations.

Fed Chairman Ben Bernanke and his colleagues seem to be closing the idea of their meeting in September, according to minutes of unexpected deliberations were released the mardi.Les economists predict Fed officials approve program meeting November 2-3.

Fed policymakers also spoke at length meeting on 21 September on a strategy to increase spending by people suggest prices might increase in the near future, after expressing concerns that the economy was slower growth that they expect.

While the u.s. Federal Reserve officials did not see economy sliding toward a recession, they feared that it became vulnerable to the "potential adverse impact", according to the minutes .they have raised concerns that unemployment was 9.6% in the last months, would remain high.

Fed officials said they were willing to provide additional relief "before long," according to the minutes .the economists and investors, who took as a sign that they are ready to act.

"The Fed is close to the establishment of a second round" stimulus, Paul Ashworth, an economist at the economic capital, said the minutes showed.

Wall Street was waiting with impatience decision the Federal Reserve to buy debt, officially known as quantitative easing. The minutes of the US Federal Reserve has reported this move is close and all the major indexes.

Fed policy makers did not settle in big how debt purchase should be or how to structure the programme.Ces details are what they are fighting with as prepare them for the November meeting.

The Federal Reserve to purchase aims to lead the interest rates on mortgage loans, business debt and other loans.He hoped that this will stimulate us to boost spending, which could strengthen the economy and ultimately to chip away at stubbornly high unemployment rate.

Public comments by officials of the reserve US Federal since the meeting of 21 September suggests program will be smaller than the one he 1.7 billion dollars to the recession. In this program, the US Federal Reserve has purchased a mixture of mortgage-backed securities and debt.Effort was credited with forcing mortgage rates and support for the housing market is weakening.

Two Fed officials in recent observations suggested that new purchases should not exceed $ 500 billion.

The September meeting, some officials of the US Federal Reserve thought that the economic benefit of buying the debt could be "small".A smaller programme is not expected to lower rates as crisis-era program the Fed, say the économistes.En in addition, there is concern that even cheaper loans will fail to get people and businesses to the crossover of their spending.So far, they have not been sufficient confidence in the economy of their own financial perspective to do so.

Bernanke said last week that another series of purchase of securities would probably help the economy.

So far, five of the 11 reserve Federal members, including Bernanke, voters are bent towards additional assistance or are less open to it.Fed Vice President Janet Yellen, whose functions include the construction of support for the position of Bernanke is likely to vote with the Director of the reserve.Fed governors Kevin Warsh Elizabeth Duke, Daniel Tarullo, Sarah Bloom Raskin also are likely to return Bernanke.Thomas Hoenig, President of the Federal Reserve Bank of Kansas City, however, was the decision of the Federal Reserve, dissident year-round and is likely to oppose additional assistance.

Speaking Tuesday in Denver, Hoenig has said that he is not convinced that the debt more purchases "does not work in the real world."

William Dudley, President of the Federal Reserve Bank of New York, has estimated that a $ 500 billion program would provide the same amount of stimuli as a reduction of half-point or three-quarters to Senior Federal Reserve interest rate.This rate is already close to zero and cannot be further cut.That is why the Fed is weighing buy more debt.

Another option for helping the economy also discussed extensively during the September meeting, according to the minutes lekeage discusses the Fed is trying to raise the expectations of the population where they believe that inflation is headed in the months to venir.Si Fed communicate that it will tolerate a higher than normal inflation, which might make companies feel more inclined to move their prix.Shoppers - thought prices could be increased still further on the road - would be more likely to make purchases more t?t.Qui would raise inflation running now at very low levels.

Such an approach would push "real" or corrected for inflation of low interest rates could encourage more dépenses.Nourris officials at the meeting noted that there are different ways September might attempt to influence the expectations of inflation .a way was to include information in the minutes of the meetings of the Fed in an attempt to shape the expectations about inflation.

It is a controversial idea that Bernanke called "inappropriate" in August, taking into account the current economic circumstances pays.Cependant, at the time he said such an approach "could make sense" If the country was mired in a situation of prolonged deflation that weakened the public trust.

According to the minutes of the US Federal Reserve officials "seen only in small dimensions of deflation."Deflation is generalized decline in prices, wages and stocks and house values.

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