Fed interest rate cuts by central banks suffering as Baoxinjiuhuo.

<P> Federal Reserve (Fed) 1 月 30 cut interest rates again on 0.5 PCT, the federal funds rate to 3%. .Fed twice in eight days to cut interest rates, a rate of 125 percent since 1990 to take the most aggressive Fed monetary policy, central banks make co-operation to the test. .Economists and the media that, Fed aggressive rate cuts to save with the subprime mortgage crisis, like Baoxinjiuhuo; low interest rates may intensify trade disputes, or even shake the dollar value and role of reserve currency status. .: Http://finance. 2007 年 9 months, the cumulative U.S. Fed cut interest rates reached 225 percent increase, following the emergency cut in interest rates 22 0.75 PCT, the 30 and 50 percent cut interest rates again, so that the outside world wonder .U.S. Federal Reserve Alan Greenspan has been gradual adjustment of monetary policy strategy is has been changed. .</ P> <P> Fed Chairman Alan Greenspan, the former in the whole 18 years, there has never been a cut in interest rates by more than 50 percentage points, he led by 25 percentage points gradual adjustment strategy, outsiders called the "25 PCT .wisdom. " .</ P> <P> Bernanke's aggressive rate cuts by outsiders as "heavy penalties in times of trouble." .30 U.S. Department of Commerce Department data show that the public, the U.S. GDP growth last year, only 0.6% in the fourth quarter, far below market expectations of 1.2%. .</ P> <P> According to Macroeconomic Advisers U.S. statistics show that U.S. households last quarter fixed asset prices, stock prices and household real disposable income declined for the first time since 1974. .</ P> <P> In addition, 30 S & P said it is considering more than 500 billion U.S. dollars with bad mortgage-related investments were downgraded to display the sub-prime crisis, the impact on the financial system continues to deteriorate. .</ P> <P> Fed cut interest rates sharply twice, with the diminishing marginal effect, the market reacted coolly to cut interest rates. .Inflationary pressures in the global environment is not slowing, Fed rate cuts have led to a dilemma facing central banks. .</ P> <P> Bank of Canada (BOC) Paul Jenkins 30 Vice President, said Thursday the Bank of Canada short-term need for further interest rate cuts and that, given the recent volatility of the Canadian dollar too much, the Canadian dollar peg to the dollar's exchange rate policy .is a mistake. .</ P> <P> Fed cut interest rates, the Hong Kong Monetary Authority 31, the base rate has been correspondingly from 5% to 4.5%; South Korean central bank also hinted that the difficulties facing the test of interest rate policy, interest rates should be cut in interest rates rather than .. .</ P> <P> However, the European Central Bank (ECB) president Jean-Claude Trichet to cut interest rates in the attitude of tough issues remain, he spoke at the European Parliament on Wednesday that the sharp adjustment in the market and the turmoil, the central bank's role is .concerned about inflation expectations to avoid the already highly volatile markets add new unrest. .</ P> <P> Fed continue to cut interest rates also make the Middle East, GCC countries are facing increased pressure to adjust the exchange rate regime. .According to "Gulf Times" reported on the 30th, Qatar officials said it is considering the U.S. dollar decoupling. .Since the implementation of the GCC countries peg system, the domestic currency will depreciate the dollar, increasing the inflationary pressure. .</ P> <P> economists to question the U.S. consumer over the credit and excessive consumption has caused the subprime mortgage crisis, the Fed now has negative interest rate policy continues to hope to encourage consumption to resolve this crisis, this is like Baoxinjiuhuo. .</ P> <P> British "Financial Times", deputy editor Martin Wolf and even that the U.S. Fed rate cut will be blowing in the future a new round of asset price bubbles. .</ P> <P> Fed rate cuts also face the moral hazard question. .In the interest-rate meeting on 30 vote against the Dallas Fed President Richard Fisher on that branch, Fed should not harm the public interest to save Wall Street interests. .2006 Nobel Laureate in Economics Edmund S. Phelps 29 日 criticized, Fed rate cut not because of the recent economic situation is required. .</ P> <P> the Federal Reserve cut interest rates will cause the dollar continues to weaken, the U.S. trade deficit is expected to improve, but can also lead to a new round of trade protectionism. .The weak dollar, exchange rate instability increases might lead to a drop taken, "beggar thy neighbor" exchange rate policy, intensifying trade disputes. .</ P> <P> "The Wall Street Journal" that, Fed continue to cut interest rates or monetary policy in the international cooperation in facing the dilemma. .Collaboration to promote global central banks, Fed need to send friendly signals that monetary policy should be firmly maintained and the dollar value of the dollar reserve currency role-based. .</ P>.