Monday, December 20, 2010

Urged all parties say the Federal Reserve cut interest rates to save market.

Despite the increased volatility in financial markets on Wall Street, the market hopes the Government Helping Hand, but the Federal Reserve (Fed) was not clearly stated. .16-day meeting they decided that the federal funds rate at 2 per cent. .<P> Integrated media reported on Tuesday's meeting, the Federal Open Market Committee (FOMC) blind to the rising interest rate cut Wall Street rescue the market's call, the resolution determined to maintain its interest rate target unchanged at 2. .As the weekend Lehman Brothers and AIG on the attitude of the general, Fed said: "No, you have to fend for themselves." </ P> <P> cut interest rates in addition to help lift investor psychology, that is operating outside the Fed, and .is not clear what function can play. .In fact, we already know the Fed is committed to deal with the financial crisis, since such information has already flooded everywhere. .</ P> <P> cut in interest rates is a tool to help slow the economy. .Typically, the cut bank overnight call rate, allowing increased flow of credit within the economy. .After about nine months during brewing, the economy will react. .</ P> <P> but can not wait for today's crisis has been nine months. .FOMC has lowered its interest rate target 3.25 PCT, has also played a part of the effect, but failed to stop the Wall Street crisis of confidence. .</ P> <P> cut in interest rates and can not restore confidence. .Only a direct hit businesses a helping hand, coupled with time of healing, can actually be effective. .</ P> <P> Fed can not ignore the plight of the economy and markets. .Fed statement released after the meeting made clear that policy makers worried about the financial market crunch and the weak labor market. .Their understanding of economic growth appears to have slowed recently, and directed at the credit crunch, housing downturn, there is a new culprit: the export slowdown. .</ P> <P> The statement suggests that if the economy has not been improved by the end of may further cut interest rates. .But now, Fed has to say no. .</ P> <P> attached: Fed Statement </ P> <P> Federal Open Market Committee (FOMC) announced today the resolution to maintain the federal funds rate target unchanged at 2 PCT. .</ P> <P> a substantial increase in financial market tightening labor market is weakening further. .Recent economic growth appears to slow down, partly because of weaker household spending, Department of reaction. .</ P> <P> credit crunch, the property market continues to decline, export growth slowed, possibly in the next few quarters, putting pressure on economic growth. .</ P> <P> But with time, a substantial relaxation of monetary policy, coupled with ongoing measures to increase market liquidity, should help promote moderate economic growth. .</ P> <P> part in energy and commodity prices pushed up the rally earlier, inflation has been high. .The Committee is expected later this year and next year, inflation will become a moderate, but the inflation outlook is still highly uncertain. .</ P> <P> downside risks to economic growth and rising inflation risks, both for the Committee serious concern. .The Commission will pay attention to economic and financial developments carefully and will be required for taking action to promote sustainable economic growth and maintain price stability. .</ P>.

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