Thursday, March 3, 2011

Bernanke announced an "end" near-zero interest rate program is not for the implementation of.

<P> Federal Reserve (Fed) Federal Reserve Chairman Ben Bernanke outlined the end of yesterday's near zero interest rate policy of the plan, but also stressed that, given the economy is too fragile, and not soon to implement this plan. .Affected by this, U.S. bond yields dropped sharply. .</ P> <P> According to the British "Financial Times" reported, investors and politicians face growing pressure to increase, the Federal Reserve Bernanke listed the policy for their own exit strategy. .These policies for the economy into a lot of liquidity, triggering inflation concerns. .</ P> <P> But Bernanke stressed that although the economy has shown signs of improvement, but the Fed going for a long period of time to keep interest rates at very low levels. .</ P> <P> submitted to Congress semi-annual report, Bernanke said: I think that we are faced with a very long-lasting difficulties, because even as the economy began to improve in the outputs, but the unemployment rate will still .quite a long time high, so do not feel like a very strong economy. .</ P> <P> Fed expected end of this year, the U.S. economy will begin to grow again, but the unemployment rate (currently 9.5%) until 2011 will remain high. .</ P> <P> Bernanke's testimony so that investors believe that interest rates will remain low for a long period of time. .Affected by the U.S. Treasury prices higher, 10-year yield fell 12 basis points to 3.46%. .</ P> <P> UniCredit Bank (UniCredit) chief economist Mark? 阿隆齐奥塔 (Marco Annunziata), said the reaction may not last. .Inflation concerns and hopes for recovery, will make long-term upward pressure on yields once again, he said. .A period of inflation does not pose a risk, but can still make the Fed worried about inflation complicates the task, the time may be earlier than the Fed's expectations. .</ P>.

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