FXstreet.com (Barcelona) - Nomura Economists have explained their views on the US.
They feel that waning business confidence will continue to dampen hiring and investment whilst ample economic slack should restrain inflation and keep inflation expectations anchored.
They continue, “After providing further policy accommodation the FOMC is likely on hold for now, but we expect more easing early next year.” However, they believe that Europe’s debt crisis and he looming ‘fiscal cliff’ should continue to weigh on growth through the rest of 2012.
They finish by highlighting that they expect policymakers to act after the election to avert the effects of severe fiscal tightening scheduled to begin in 2013.
They feel that waning business confidence will continue to dampen hiring and investment whilst ample economic slack should restrain inflation and keep inflation expectations anchored.
They continue, “After providing further policy accommodation the FOMC is likely on hold for now, but we expect more easing early next year.” However, they believe that Europe’s debt crisis and he looming ‘fiscal cliff’ should continue to weigh on growth through the rest of 2012.
They finish by highlighting that they expect policymakers to act after the election to avert the effects of severe fiscal tightening scheduled to begin in 2013.
