Positive U.S. Data Suggest The Fed Will Continue Its Withdrawal Of Stimulus Plan

Positive economic data suggest that the meeting of the U.S. Federal Reserve this week, the last chaired by Ben Bernanke before leaving office on January 31 , will continue the path marked in December gradual withdrawal of stimulus billionaire money .

At the meeting of the Federal Open Market Committee of the Fed ‘s 28 and 29 January few doubt that the current monthly volume of bond purchases, 75,000 million, is down again.

“Probably we will continue on a path of gradual reductions and restrained in the pace of purchases , assuming the economy evolves as we hope to do so ” , said this month John Williams , president of the Federal Reserve Bank of San Francisco.

The question is whether it will again be 10,000 million dollars , as happened in December.

Since the meeting of then U.S. indicators showed a rebound in economic activity higher than expected in the last quarter to an annual growth rate of Gross Domestic Product ( GDP) of 4.1 percent and a further decline in the rate unemployment to 6.7 percent in December.

The International Monetary Fund ( IMF) also revised upward last week forecasts U.S. growth in 2014 to 2.8 percent compared to 1.9 percent of 2013 .

“The rebound in 2014 will be carried out by domestic demand and supported in part by the reduction in the fiscal drag as a result of the recent budget agreement ,” said the IMF in its update report ” Global Economic Prospects ” .

In light of this background , the head of the Fund, Olivier Blanchard, economist noted that the reduction of 10,000 million dollars is “appropriate ” and added that it is “fundamental” that the Federal Reserve will continue with its gradual withdrawal of monetary stimulus as the economy improves, but ” it does avoid a premature withdrawal .”

Markets also seem to anticipate the end of time of “easy money ” .

Wall Street closed Friday with a sharp drop and the Dow Jones Industrial Average fell more than more than 300 points, or 1.96 percent , amid problems in several emerging countries , whose currencies have registered declines against the dollar in the last week, and unambiguous signals from the Fed ‘s intention to continue the stimulus output .

Following the meeting of the Fed , Bernanke will step who until now was his ” number two,” Janet Yellen , ensuring the continuity in U.S. monetary policy .

Bernanke has been the architect of the ultraexpansiva monetary policy , since the outbreak of the financial crisis as a result of the housing bubble in 2008 , has kept the benchmark interest rate between 0 percent and 0.25 percent and launched three rounds multimillion liquidity .

Yellen is therefore responsible for captaining the phasing out of the plan, once the economy has begun to show signs of consolidation, and calibrate the output depending on the context.

The first meeting of the Fed’s Yellen as President took place on 18 and 19 March , and then is scheduled to appear at a press conference .

These press conferences, a novelty in the history of a century of U.S. central bank, are another legacy of Bernanke , who urged them as part of its strategy to increase the transparency of the institution.