The government seems committed to continued stimulus to fuel this domestic demand.
The report jarred the market from its tenuous balance between gradually improving economic data and the Federal Reserve's continued stimulus measures, which have been seen as providing a boost to stocks.
U.S. inflation expectations have been on the rise as investors are concerned about continued monetary stimulus.
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And, McEwen continued, stimulus measures are likely to continue in North America and Europe.
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Low inflation gives the Fed leeway to pursue continued economic stimulus.
In the short run that includes keeping fiscal-easing measures in place, at least until there is less deflationary slack in the economy. (So far the government has prevaricated about the need for continued fiscal stimulus.) In the longer term, it should strive to raise Japan's trend rate of growth, which many reckon has fallen to about 1% a year from 1.5-2% previously, as the population shrinks.
There is not one single event which caused this shift, but rather a combination of higher stock prices, monetary stimulus, continued economic growth and seasonality.
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In those years the market made gains in the winter months and then, fueled by massive government stimulus programs, continued to make gains during the summer months when a seasonal investor would have been out of the market.
In those years the market made gains in the winter months, and then, fueled by massive government stimulus programs, continued still higher during the summer months when a seasonal investor would have been invested in something other than stocks.
"Despite the Fed holding firm on the U.S. stimulus plan and continued optimism from the Asian markets overnight, investors still need Cyprus to deliver the goods with a credible plan B before we see another hike higher for equities, " said Mike McCudden, head of derivatives at Interactive Investor.
According to the latest Vickers Weekly Insider Report, their selling has continued even after the Fed announced its QE3 stimulus measures.
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Analysts also said gold is underpinned by ongoing European debt issues, a continuation of central-bank buying after Bank of Korea purchases, plus still-soft U.S. economic data that means continued loose monetary policy and perhaps even more stimulus.
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Democrats get their stimulus tax credits renewed for two years, continued tax cuts for the middle class and 13 months of extended unemployment benefits for those who have been laid off.
He continued: "I don't believe this is a fiscal stimulus rather a slight of hand".
The dollar continued to rally against major currencies as investors bet on looser monetary policy abroad, and as other central bankers outlined stimulus plans.
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