Monday, December 20, 2010

U.S. Federal Reserve interest rate rise forces face slightly Ji.

Decision-making unit of the Federal Reserve Federal Open Market Committee (FOMC) members of the reorganized, and more inclined to raise interest rates in the local branch president of the impact of the substantial increase in interest rate decisions, which makes the market turn more attention to regional branches of the U.S. president's remarks, .also led to a stronger U.S. dollar. .<P> (Http://finance.) FOMC is expected to vote in the external environment change, will lead to greatly increased the probability of future rate hikes, the recent rise in the dollar, the dollar rose against the euro break $ 1.58, versus the Japanese yen also .station 107 yen. .</ P> <P> FOMC's voting power balance has been broken, the voting FOMC members are mainly due to restructuring. .In normal times, FOMC voting members include Federal Reserve Chairman Ben Bernanke Federal Reserve, including seven members, with five regional branch president. .Because the number of directors more, so the interest rate decisions are more driven by them. .</ P> <P> However, as the term of a director, and another governing the return of the academia, means that the future will be showing several of the FOMC meeting and the regional voting member of the Federal members present evenly balanced, or .The latter situation may prevail, leading to ecological whom FOMC voting rights has greatly changed. .</ P> <P> regardless of what the actual number of voters, this change will allow the Federal Reserve interest rate decision for the regional branch president's influence has increased considerably, which boost the dollar will be a great benefit, because these areas of the voting members ., more than the Fed Governor advocates to raise interest rates to curb inflation is rising rapidly. .</ P> <P> branch president of the Philadelphia Federal Reserve is also a member of the FOMC voted Pu Luosuo (Charles Plosser) statement on Tuesday that the Fed's benchmark interest rate is too low 2 PCT and they should be raising interest rates as early as possible in order to avoid inflation. .</ P> <P> But analysts believe that monetary policy shift does not happen too soon, because including the Cleveland, Minneapolis and New York branch president on monetary policy and more inclined to Bernanke's dovish views. .</ P> <P> Fed Governor Frederic Mishkin announced in May to return to academia. .August 5 the FOMC will be his last meeting to vote. .As another Governor Randall Kroszner (Randall Kroszner) the term has already expired, although he was nominated reappointment, but it was the Democratic Party to boycott because the future is uncertain. .</ P>.

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