For the current week have just two significant events for the U.S. economy, which will determine the mood of the markets in the coming months. Tuesday, November 2 elections to the U.S. Congress. Democrats managed to retain a majority in the Senate. However, a sustainable position of the Party Barack Obama hard. "I call the current situation in the U.S. economy of fiscal disaster. The budget deficit over the next decade will be a trillion dollars. It is clear that this quantity is impossibly high for the economy. At the same time we are in a political impasse: the Republicans veto any attempt to raise taxes, Democrats oppose any reduction in government spending. After the November elections, Republicans will increase their influence, and we get all incompetent government. All this is very bad for the economy and increases the probability of the second wave of recession. Now I appreciate his chances about 35-40%, "- said the chairman of Roubini Global Economics Nouriel Roubini.
Democratic victory stimulate the weakening U.S. currency. On Wednesday, 3 November, the euro is worth 1.403 U.S. dollars, but the strong motions until you'd expect. In front of no less important event for the American currency - the announcement of the results of U.S. Fed meeting, and it causes a lot of debate among economists, analysts and financiers.
"Remember, what is the mandate of the Federal Reserve System. It is to maintain full employment and price stability. We see clear signs of deflationary pressures in the U.S. economy and the inflation rate is clearly below the target range. And at the same time, we see the economy, working explicitly below its potential, and very high unemployment. In these circumstances it is easy to understand the position of the Federal Reserve: Using quantitative easing, the regulator is trying to kick-start the economy and deal with the problem of unemployment, which is also so much influence on the political situation before the elections, "- said Chairman of the Board Directors of Cerberus Capital Management, former U.S. Treasury Secretary John Snow. These votes are already known - from the Fed again "free hand". Let's see what will be the Fed's generosity, cornered macroeconomic instability.
