Market Update 29.08.2011

Central bankers urge governments on expansion Central bankers gathered at an annual retreat in Jackson Hole, Wyoming, this weekend had a message for political leaders: monetary policy alone can’t keep the global expansion going. Federal Reserve Chairman Ben S. Bernanke urged adoption of “good, proactive housing policies” to reverse the depressed U.S. real estate market and warned lawmakers to avoid steps that may hurt short-term growth. Ewald Nowotny of the European Central Bank Governing Council said euro-area governments should expand the powers of their regional bailout fund. Most of the economic policies that support robust economic growth in the long run are outside the province of the central bank,” Bernanke said. The call to arms ended a month in which the Fed and the ECB raced to shield their economies from fiscal tightening and strengthen a world economy that is losing momentum. Warning of a “dangerous new phase” for the world economy, IMF director Christine Lagarde said. Read more news at Forex Trader