The Fed's 2nd pause about the interest neutral bottom

The Fed announced on Thursday in Beijing time 9 months no interest, the benchmark interest rate at 5.25% level.　　Although this decision was expected, but the Conference Declaration was so inclined.　　Although it is already the second time pause about the interest, and there are more people believe the Fed will maintain this level of interest rates by the end of the year, but the Fed continues to leave room for the interest, in the Conference declaration indicates that inflation has risen, resource utilization, energy and commodities, commodity prices are still living in high inflation poses a continuing potential pressure.　　At the same time the Fed has admitted owing to the decline in crude oil prices, which include declining inflation expectations, in previous monetary tightening by the cumulative effect gradually, as well as other factors inhibiting the consumption demand, so that the current inflationary pressures are easing.　　On the day of the United States Department of energy releases crude oil inventory report shows that the United States last week, gasoline and oil stocks are rising, also in New York, crude oil futures dropped to 60 every Wednesday, March 21, low-bit since. This Declaration and compared to the previous time, in addition to describing the cause of the slowdown in economic growth, reduce energy prices and interest rates rise, the lag is basically the same as that of the rest.　　It is worth noting that, since the pause after the interest cycle, two monetary policy meeting, the Declaration remains a presentation of crude oil prices in the "high" vocabulary. 8-core CPI United States than 0.2% rise in the month, and as expected. However, core factory price index, than decline 0.4%, significantly lower than expected, reducing inflationary pressures are displayed. August building permits fell to 3-year low, FTN Financial Chief Economist ChrisLow said, "now is not only real estate slowdown will quickly spread to other economic level, it is clear that the interest rate the Federal Reserve has ended.　　"Maybe it is more mixed, as well as the fed a few months ago to advocate to speak of" get data "principle, the Fed needs analysis more economic data to assist in decision-making.　　This vote yixi, including Federal Reserve Chairman Ben Bernanke, 10 members voted in favour, J e ffre y M a c k .L e r voted, he advocates should move 0.25% again. Pengboshe reports that Pacific investment management company (PIMCO) Chief Investment Officer at Grosse (BillGross) expected that from now on 12-month period, the Fed will cut interest rates to nearly 4% instead of 5%.　　Gross also pointed out that no matter how the Fed will cut interest rates next 12 to 24 months in the United States economic growth continues to slow. Asia Forex Dollar yesterday, from the dollar index decreased to 85.55 85.89 minimum; the US dollar against the Yen exchange rate fell from 117.48 117, dropped to 116.86; EUR/USD then rise 52 basis points, to 1.2735.