Friday, March 18, 2011

Federal Reserve may cut interest rates save the economy ended 0.25 PCT.

Federal Reserve (Fed) 4 月 29 at a two-day monetary conference was held, the market expected this will be cut in interest rates of 0.25 would be determined, but the short term will not move any further interest rate cuts. .In addition, Fed business executives will also discuss the bank reserves deposited at the central bank interest payments. .<P> (Http://finance.) Fed Chairman Ben Bernanke and policy makers meet the afternoon of the 29th, a two-day monetary conference, the interest rate decision will be announced 30 days, is widely believed that this will be of Fed .lowered the federal funds rate 0.25 PCT, to determine the level of 2. .</ P> <P> and relevant to consumers and businesses hundreds of thousands of the main lending rate, is also expected to cut 0.25 PCT, to 5 per cent, as the federal funds rate to its lowest level since the end of 2004 simultaneously rewritten. .</ P> <P> Fed policy is currently facing a dilemma, on the one hand to shoulder the task of boosting the economy, but also forcefully prevent further deterioration of inflation. .</ P> <P> economists said, given the level of interest rates have been low relative to history, the effect of monetary easing to boost growth will gradually appear, together with high inflation, Fed will not adjust interest rates tend to short-term .level, even during the freezing of interest rates may stretch to early next year. .Some analysts said the Fed cut interest rates will be decided to suspend a positive message, because it showed the economy had stabilized. .</ P> <P> addition, under the Fed's official website posted on Monday the latest information, this has been discharged Fed board meeting on Wednesday, 11 am to discuss the Commercial Bank reserves deposited at the central bank interest payments problems. .</ P> <P> so far Congress has not yet passed a law in 2011 to permit the Fed to pay interest on reserves to commercial banks, sources said, in order to increase the means to stabilize the market, Fed officials consider in advance the effective date of the payment of interest, related .The program allows Fed lowered interest rates in the not inject more funds under the financial markets. .</ P> <P> Wrightson ICAP chief economist Ke Lan Road, said: "This is a lack of policy tools Fed, other central banks are permitted to pay interest on reserves." </ P> <P> under existing U.S. law, .Fed starting from October 2011 can not exceed the general level of short-term interest rates, supporting information to the escrow provision in the Fed's Commercial Bank. .</ P>.

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