Tuesday, December 14, 2010

U.S. Federal Reserve cut interest rates by 25 basis points this week or.

U.S. Federal Reserve Board will be Tuesday, Wednesday (local time 29, 30) held in monetary policy decision-making session, when may be made 8 months since the seventh rate cut decision. .However, based on concerns about inflation, the Fed is likely to remain 2.25% of the federal funds rate unchanged. .(Http://finance.) Analysts believe that if the Fed cut interest rates, could fall by 25 basis points, the benchmark interest rate from the current 2.25% to 2%. .The rate cut, the current round of interest rate cut cycle will end. .The Fed cut interest rates this year has accumulated 175 basis points. .In the 30 Federal Reserve monetary policy decision-making after the meeting, will announce interest rate decision and policy statement. .Analysts generally believe that the Fed does not think the economy has been through the most difficult period, almost certainly, the statement will continue to express concerns about economic growth. .Federal Reserve monetary policy decision meeting for 29 to discuss interest rates began, Fudan University, Economics Professor Yin Bocheng Morning Post in an interview yesterday, said that as most people already agree that the U.S. economy into recession, the Fed rate cut is the "point of no return ."However, as interest rates several times before, this is not expected to increase, 0.25 percentage points. .Zhou Chunsheng professor of finance at Cheung Kong Graduate School believes that the current Fed rate cut is unlikely. ."As expected, adjusting the space has been very limited. In the March 18 after adjusting the federal funds rate is already 2.25%, even though this is only on interest rates by 25 basis points down, relatively large pressure on the market." From the economic growth ., U.S. first quarter economic data, while not very good compared with previous years, but last time when the Fed interest-rate expectations to a lesser extent. .In addition, and, by the depreciation of the dollar, upward pressure on oil and other raw materials, the U.S. import prices rising rapidly. .If this continues to lower interest rates, the stability of the market adversely. ."The Fed's main task is to stabilize the market, so I expect this rate cut is unlikely to continue." Zhou Chunsheng said. .Up to now, the U.S. economy has lost nearly 250,000 jobs lost confidence of consumers, gasoline prices rose by 17%, asset values following the fall. .Housing and auto sales decline means that up to 6 years of economic expansion may be over..

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