The document discusses the US Federal Reserve and its actions to stimulate the US economy through quantitative easing. It summarizes 2010 US economic expansion figures and notes the Federal Reserve pumped $600 billion into the economy. While this helped raise stock prices for mining companies, unemployment remained high at 9.6%. The actions aimed to reduce unemployment and boost consumer spending to create a stronger, more stable economy.

1. The US Federal Reserve
aka
The Pumping Machine

2. Introduction
• US economy – expansion figures 2010
• Who is the US Federal Reserve?
• Actions of the US Federal Reserve
• The impact of those actions
– On companies, unemployment and consumer
spending
• Conclusion

3. US economy – expansion figures 2010
Note: No figures yet for the 4th quarter
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-0.5
0
0.5
1
1.5
2
2.5
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3.5
4
1st quarter 2nd quarter 3rd quarter 4th quarter
Growth US Economy - 2010
2010
Log. (2010)

4. Who is the US Federal Reserve?
• Central Bank of the US
• 1913
• Ben Bernanke
• Washington D.C.

5. Actions of the US Federal Reserve
• Pumping money into the US economy
• Quantitative Easing
– monetary policy
– increase the supply money by increasing the
excess reserves
• $600.000.000.000

6. The impact on companies
• Biggest raisers: The mining companies
• Financial Times Stock Exchange Index
= FTSE100

7. The impact on the unemployment
• Stuck on 9.6%

8. The impact on the unemployment
• Fear is fading
• Consumer spending: 70% of the GDP

9. Conclusion
• Reduce the unemployment
• Create jobs and give training
• Solved? Stronger and stable economy

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