The Federal Reserve surprised many by saying it would continue to pump money into the US economy. The Open Market Committee is not tapering the pace of its bond purchases. The immediate reaction was that financial markets jumped to fresh highs, even though the Fed has cut its growth forecast.
Ben Bernanke said the economy is still too weak for any change now. Similar sentiments were expressed by Barack Obama in his speech on the fifth anniversary of the financial crisis. The US president warned congressional Republicans that they could trigger fresh “economic chaos”.
But, of course, the financial crisis was not only in the US. Europe is still struggling to overcome its consequences. However the region’s governments are seeing enough progress to think about selling their stakes in bailed-out banks.
We discuss all that with Nejra Cehic from Bloomberg in this edition of Business Weekly.