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The Federal Reserve Rescues &Nbsp And Adopts "All Available Means".

2011/8/11 11:11:00 45

The Federal Reserve Rescues The Market

The US Federal Reserve announced on 9 March that it will continue to maintain the federal benchmark interest rate at a historically low level of zero to 0.25%, and that it will maintain at least until the middle of 2013.

This shows that the US central bank's worsening of the economic recovery trend also means that the US real economic recovery in the next two years is not optimistic.

The Fed did not mention the implementation of the third round of quantitative easing (QE3) policy.


It is not mentioned whether QE3 is implemented.


In response to the financial crisis and stimulating economic recovery, the Federal Reserve has kept the federal benchmark interest rate at a record low level of zero to 0.25% since December 16, 2008.

The Federal Reserve said on the 9 day that in order to promote the ongoing economic recovery process and maintain the inflation level in line with expectations, it decided to maintain the target rate of the federal funds rate between 0 and 0.25% unchanged, and maintained this level until at least the middle of 2013.


The Fed did not propose the implementation of the new round of quantitative easing policy, but said it would adopt "all available means" to promote sustained economic growth and maintenance.

price

Stable.

This means that the Fed's monetary stimulus will remain, but it will not expand on a temporary scale.


Liu Yuanchun, vice president of the school of economics, Renmin University of China, said yesterday that the move of the Fed has played a role in balancing the market and stabilizing investor confidence.

Compared with QE3, maintaining a low interest rate policy is a more gradual approach. Undoubtedly, it is a better choice when the economic recovery in the United States is slow and the domestic financial problems remain to be solved.


The credit environment is very tense.


The Fed also said that the current US economic recovery rate is significantly lower than the Fed's expectations, the labor market situation has deteriorated, economic data show that consumer spending, business investment and industrial output have declined, and financial market conditions and credit environment is still very tight.


Northeast Securities believes that this time

Federal Reserve

The statement confirms that the economic downturn is not affected by short-term shocks such as the impact of the oil price and the Japanese earthquake. Therefore, the US economy will continue to grow below the expected growth rate, and there will be downside risks.


Guoxin Securities believes that the statement of the Fed has actually foreshadowed the implementation of QE3 in the future.

If the US economic growth continues to deteriorate, the possibility of implementing the QE3 by the Federal Reserve will be greatly increased, which is not conducive to the control of the domestic inflation situation.


Correlation


S & P: the Anglo French rating will not be lowered.


Standard and poor's European sovereign rating agency Moritz Kramer said Tuesday that the agency will not reduce the "AAA" sovereign credit rating of the UK and France in the next two years.


In an interview with a German media on the same day, Cramer said that the agency reflected the risks it saw through the rating outlook, and the US credit observation was negative, so S & P downgraded its sovereign credit rating.

He also said that S & P's job is not to appease the market, they must expose the risks they see.


Cramer also said that the outlook for Britain and France is stable, and that it should not be lowered in two years.

Since the United States had been downgraded by S & P, the market has speculated on which country the next "down" will be.

The United Kingdom, France and Japan are all listed among analysts as the next "downgrade" candidates.


At present, there are 18 countries and regions with the "AAA" rating of S & P, including France.

finance

The situation is most worrying.

The country's fiscal deficit now accounts for 7% of GDP.


  

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