1. The US Federal ReserveThe US Federal Reserve
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The Pumping MachineThe Pumping Machine
2. IntroductionIntroduction
• US economy – expansion figures 2010US economy – expansion figures 2010
• Who is the US Federal Reserve?Who is the US Federal Reserve?
• Actions of the US Federal ReserveActions of the US Federal Reserve
• The impact of those actionsThe impact of those actions
– On companies, unemployment and consumerOn companies, unemployment and consumer
spendingspending
• ConclusionConclusion
3. US economy – expansion figures 2010US economy – expansion figures 2010
Note: No figures yet for the 4th quarterNote: No figures yet for the 4th quarter
4. Who is the US Federal Reserve?Who is the US Federal Reserve?
• Central Bank of the USCentral Bank of the US
• 19131913
• Ben BernankeBen Bernanke
• Washington D.C.Washington D.C.
5. Actions of the US Federal ReserveActions of the US Federal Reserve
• Pumping money into the US economyPumping money into the US economy
• Quantitative EasingQuantitative Easing
– monetary policymonetary policy
– increase the supply moneyincrease the supply money byby increasing theincreasing the
excess reservesexcess reserves
• $600.000.000.000$600.000.000.000
6. The impactThe impact on companieson companies
• Biggest raisers: The mining companiesBiggest raisers: The mining companies
• Financial Times Stock Exchange IndexFinancial Times Stock Exchange Index
= FTSE100= FTSE100
7. The impactThe impact on the unemploymeon the unemploymentnt
• Stuck on 9.6%Stuck on 9.6%
8. The impactThe impact on the unemploymenton the unemployment
• Fear is fadingFear is fading
• Consumer spending: 70% of the GDPConsumer spending: 70% of the GDP
9. ConclusionConclusion
• Reduce the unemploymentReduce the unemployment
• Create jobs and give trainingCreate jobs and give training
• Solved? Stronger and stable economySolved? Stronger and stable economy
