The end of the U.S. unemployment rate is expected to cut interest rates pushed to new 0.5 PCT.

<P>: Http://finance. News, U.S. unemployment rose to the peak years of economic recession in the shadow enveloped, Goldman Sachs, Barclays and JP Morgan and other large investment banks as well as former Fed official Vincent Reinhart agreed that, Fed at the end of this month .will cut short-term interest rate of 0.5 will be determined in one breath to 3.75%. .Fed in on Friday announced that in January the two banks scheduled auction call loans will be twenty billion U.S. dollars the amount of amplification to three billion U.S. dollars to ease the U.S. credit crunch seriously and ensure that "as long as necessary" will .continuous auction lending funds. .</ P> <P> "Business Times" reported that the disappointing December employment report is released, Goldman Sachs, Barclays Capital, UBS, JP Morgan Securities and the country's five major U.S. bond underwriters an immediate change .view that the Fed should be in the January 29 to 30, will cut interest rates by 0.5 of the PCT, the federal funds rate down to 3.75%. .Kasman, chief economist at JP Morgan and the first quarter of this year's economic growth rate estimates from the original 1% growth revised down to flat. .</ P> <P> Fed former head of monetary affairs, said it had Reinhart 4: "This could be a turning point, now close to the ground situation in the U.S. economy than previously thought." He said: "The economic data released the day, plus stock .weak and financial markets, I do not rule out the Fed cut interest rates by 50 basis points to the possibility. "</ P> <P> However, the market is still the mainstream view that the January session will cut interest rates 0.25 per cent. .According to Dow Jones Newswires reported after the release of the bond to the seventeen survey of the major underwriters median, 1 month would be down 0.25 of the PCT, March 18-session lower and lower 0.25 PCT, June will be on the official short rate forecast .to 3.5%. .</ P> <P> in interest rate futures market, in February the federal funds rate futures closing prices show that investors think interest rate cuts in January the local rate of 0.5 PCT Sixty-six percent, much higher than on Thursday showed the three into four. .</ P> <P> U.S. Department of Labor on Friday, December employment increased 18,000, the highest since August 2003 the lowest water level. .While the unemployment rate from 4.7% in November last year, rising to 5.0% since October 2001 for the largest monthly increase. .</ P> <P> In addition, Fed issued a statement on Friday that they will expand the new bank financing funds auction size, January 14 and 28 will be held twice every twenty billion U.S. dollars from the original ., growing to billions of dollars. .This statement means that the Fed last year, 12 months before the beginning of a short-term auction facility has become a successful way to the bank. .The bidding for the two previous bids to attract the amount of three times over two billion U.S. dollars. .</ P> <P> Fed decided to try bidding for funding the reason is because the original loan will directly inject capital into the effects of the financial system is not ideal. .</ P>.