Fed: Low interest rates may be maintained for some time.

<P> 20 Fed minutes released documents show the last regular meeting, policy-makers that "relatively low" interest rates may need to remain for some time to avoid recession. .On the same day, the Fed also announced the reduction of the expected U.S. economic growth this year to 1.3% to 2%, decrease compared with the previous forecast by 0.5 percentage points. .</ P> <P> It http://finance. Hearing, analysts thus believe that the Fed's meeting next month on 18 may continue to cut interest rates, the rate of about 50 basis points. .But many Fed members also expressed continued concerns about interest rates may trigger a bubble. .</ P> <P> published papers according to the latest Fed officials believe that the "relatively low" interest rates for some time may be required in order to avoid the U.S. economic downturn. ."Several officials noted that downside risks are very clear that many policy makers fear that the stock price decline caused by falling and household wealth, may impact consumer spending." This January 29 to 30 Federal Reserve monetary policy meeting .Minutes of the file it this way. .At that time, the Fed announced the rate cut of 50 basis points, followed by 8 days before the emergency rate cut of 75 basis points. .</ P> <P> the minutes also revealed that, although the Fed has taken action to cut interest rates, but because of the housing sector has not yet appeared signs of stabilization, the financial situation is still not stable, the Fed believe that downside risks to growth remain. .</ P> <P> Also in 20, the Fed also announced that the U.S. downturn on economic growth in 2008 forecast, but that the pace of U.S. economic growth next year will be accelerated. .According to the latest forecast, the Fed estimated that U.S. economic growth this year, 1.3% to 2.0%, higher than forecast in October last year, down by 0.5 percentage points. .</ P> <P> Chicago Board of Trade movements of interest rate futures, the Fed on March 18 the probability of 50 basis points rate cut of up to 92%, when interest rates fall to 2.5%. .However, analysts also pointed out that the inflation situation is still severe, the Fed did not dare to continue to cut interest rates to prevent birth of a new bubble. .</ P> <P> U.S. core CPI in January this year, a record increase in the largest increase since the year and a half, the Fed expects core inflation this year will be the United States from 2.1 to 2.4 percent, higher than the original forecast of 1.8 .% to 2.1%. .</ P> <P> file according to the latest release of the minutes, some Fed members expressed concerns about inflation, some people think that needs to raise interest rates, and even once proposed to stabilize the international economic situation, interest rates should be "Sharp helicopter." .In this regard, Morgan Stanley economist David Greenlaw said the Fed is to learn from past experience, the authorities concerned to maintain low interest rates for too long, it will lead to asset bubbles. .</ P> <P> this week, HSBC Investment Report released in February that, after successive interest rate cuts, the U.S. real interest rates close to zero, the rise in the medium term inflation concerns, which may affect the enthusiasm of the Federal Reserve cut interest rates .. .</ P>.