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Mix-Ansicht- Dallas FEDster McTeer hat da so ein"Gefühl" - 'die Sterne stehen gut' - kingsolomon, 23.07.2003, 22:37
- "We're sort of like a poker player who never has to cash in the chips... - CRASH_GURU, 23.07.2003, 22:58
Dallas FEDster McTeer hat da so ein"Gefühl" - 'die Sterne stehen gut'
-->unglaublich, wie im Kindergarten
Fed's McTeer: Optimistic That Economy Will Pick Up
07/23/2003
Dow Jones News Services
(Copyright © 2003 Dow Jones & Company, Inc.)
(MORE) Dow Jones Newswires
07-23-03 1343ET
DJ Fed's McTeer -2: Softer Dollar Should Help Boost Exports
NEW YORK (Dow Jones)--Federal Reserve Bank of Dallas President Robert McTeer said Wednesday he is optimistic the economic recovery will gather steam next year, but noted that he has been upbeat on the economy for some time.
Speaking at the Rotary Club of Dallas, McTeer told his audience that a variety of improving conditions point to a pick up in economic growth on the horizon, including an easy monetary policy that's pushed the federal funds rate to its current historic low of 1.0% and fiscal stimulus.
A softer U.S. dollar, most notably against the euro, should help boost the export sector, while rising stocks and falling energy costs should also support an acceleration in economic growth."The stars are aligned," McTeer told his audience in a speech.
(MORE) Dow Jones Newswires
07-23-03 1431ET
DJ Fed's McTeer -3: Optimism Based On"Hunch and A Hope"
McTeer's optimism on the economy's prospects is nothing new and even the Dallas Fed president acknowledged that his feeling isn't based on hard evidence.
'While I am optimistic that things are about to pick up, I have been optimistic like that for a while now and it's more a hunch and a hope than it is any hard evidence," McTeer said.
Turning to the dramatic turnaround in the fiscal balance sheet, McTeer said that running a substantial federal budget deficit isn't a concern yet since the sluggish economy could use the stimulus.
"I don't like deficits and I'd rather not have them over time, but if you are ever going to have one, now is the time," he said.
The U.S. budget deficit is forecast to hit a record $455 billion in the current fiscal year and $475 billion next year.
Touching on the nation's reliance on foreign capital inflows, McTeer said"'someday that's going to reach up and bite us, this large current account deficit we have year after year and this over reliance on foreign saving."
"We're sort of like a poker player who never has to cash in the chips, he said.
The current account deficit currently stands at 5.1% of gross domestic product.
Answering question from a reporter on recent remarks from Treasury Secretary John Snow, who said the Bush Administration would not criticize Japanese intervention in currency markets, McTeer said he wouldn't comment specifically on this, but that he is"a believer in flexible exchange rates."
-By Agnes T. Crane, Dow Jones Newswires, 201-938-2122;
agnes.crane@dowjones.com
(Lisa Falkenberg of Associated Press in Dallas contributed to this report)
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