October 10th – Top Stories
- Obama’s Fed pick Yellen puts focus on jobs, stability - Reuters - By Jeff Mason and Mark Felsenthal
Federal Reserve Vice Chair Janet Yellen, President Barack Obama’s pick to lead the U.S. central bank, said on Wednesday that strengthening the economic recovery and boosting employment would be priorities if she is confirmed as Fed leader.
Yellen, an advocate of the central bank’s aggressive actions to stimulate economic growth through low interest rates and large-scale bond purchases, would replace Fed Chairman Ben Bernanke, whose second term ends on January 31.
- IMF’s Zhu Says China Has Tools to Deal With Debt Levels - Bloomberg – By Ye Xie
The Chinese government has room to deal with rising debt levels, which has become a “serious concern,” according to Zhu Min, a deputy managing director at the International Monetary Fund.
While debt accumulation by companies and local government is “way too high,” the government has a lot of “policy buffer,” including $3.5 trillion foreign reserves, to resolve the problems, Zhu, a former deputy governor at People’s Bank of China, said at a panel during the IMF meeting in Washington yesterday. The government has already taken actions to curb borrowing, reducing the chances for an economic “hard landing,” he said.
- Italy to Cut EU1.1 Billion of Spending to Meet Deficit Target - Bloomberg – By Andrew Frye & Chiara Vasarri
Italian Prime Minister Enrico Letta’s cabinet approved 1.1 billion euros ($1.5 billion) of spending cuts and plans to sell real estate to meet deficit targets.
The divestitures and cuts will be spread across various ministries and bring Italy’s deficit to within 3 percent of gross domestic product this year, Finance Minister Fabrizio Saccomanni told reporters last night. The government will raise 500 million euros selling property to Cassa Depositi e Prestiti SpA or other state-owned companies, he said.