EconomicCrisis.US

U.S. consumer prices were flat for a second straight month in December as gasoline fell and food rose moderately, government data showed on Thursday, suggesting scope for further monetary easing should economic growth falter.

The Labor Department said its Consumer Price Index was unchanged. Economists polled by Reuters had expected prices to edge up 0.1%.

Core CPI – excluding food and energy — inched up 0.1% after rising up 0.2% in November. That was in line with economists’ expectations.

Although growth gained pace in the fourth-quarter, the recovery is expected to lose a step in the first half of this year mostly due to the debt crisis in Europe, which is already impacting on exports.
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The U.S. Mint circulated more quarters, dimes, nickels and pennies last year. And that’s a good thing.

When the economic crisis hit a few years ago, people turned to one of the most traditional safe havens for savings: piggy banks.

“People went into their piggy banks and their coin jars and spent those coins,” U.S. Mint Deputy Director Richard Peterson told NPR’s Planet Money. “Those coins flowed back into the banks and then ultimately back to the Federal Reserve. The Federal Reserve started filling up and they turned off the spigot of new coin production from the United States Mint.”
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Do you think predications can be turned into reality? Well, in the case of 2010’s predication, it went wrong. A year ago, it was predicted that 2011 would help us to return to the normal economical life, escaping the bites of credit crunches or recessions. But, nothing seems to be going straight that way. We expected stability in the economy with Barack Obama’s resurgence due to the springboard for his campaign of re-election, but roaming without results.

Expectation is what leads us to act or response and that was the reason for which many of the citizens thought that May was the best month for the Bank of England to move ahead with some good financial terms. Other wiser heads suggested May 2013, but that also seems a matter of confusion as per the current situation.
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The U.S. economy may have achieved a sustainable pace of growth that eases pressure on the Federal Reserve to buy more bonds while giving it time to fine tune how it informs the public about the outlook for interest rates.

“Recent economic data takes away some of the urgency for the need to engage in a new round of quantitative easing,” said Michael Feroli, a former Fed economist who is now chief U.S. economist at JPMorgan Chase & Co. in New York. The Federal Open Market Committee “can say, ‘Let’s wait and see if this is going to build on itself.’”
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