Yesterday, the Fed pledged to keep its benchmark interest rate at a record minimum of at least half of 2013, to encourage a recovery that is being "significantly lower" than expected. The U.S. central bank is "ready to use" additional measures to strengthen the economy, hobbled by weak recruitment and low consumer spending, said in a statement.
The problems in Europe continue the crisis is far more disturbing edges than the 2010 when it was Greece, Ireland and Portugal the epicenter.
Therefore, to curb fears that the European Central Bank is looking to enable the purchase of Italian debt securities in order to keep interest rates on such bonds will continue to rise affecting the cost of debt service in Italy and until perhaps marginalized from access to capital markets, an event that could spark a major crisis and unpredictable consequences.
A scenario like this could bring Europe back to 2008. The difference is that this time there are tax adjustments throughout the region, the ECB is raising interest rates (but signaled on Thursday that could keep pausing the rate rising cycle) and economics growing ever less.
Today there is almost nothing relevant in the macro environment, which has its next milestone on Friday with a new test to the American consumer through the retail sales figure.
