Asia Should be Careful Real Intention of the United States
- Date: 2010-11-17 - Word Count: 639
Share This!
In the two-day monetary policy meeting, Federal Reserve 4 am Beijing time, as expected, announced a new round of quantitative easing program. Federal Open Market Committee announced the second quarter of 2011, about 6,000 billion U.S. dollars to buy U.S. Treasury bonds.
The Fed said in a statement, the performance of the U.S. economy is currently lower than the Fed had expected, and because companies do not want to increase the manpower, which led to high unemployment, and therefore the U.S. economy faces the risk of deflation. In such circumstances, the Federal Reserve decided to maintain the 0 to a record low 0.25% interest rate to more. ANZ Bank, the Federal Reserve into raising interest rates will not be earlier than the third quarter of next year. In addition, the Fed announced it would acquire long-term treasury bonds to support economic recovery. Although the Fed has had to market a massive liquidity, but the effect of these policies began to gradually decrease and disappear, the U.S. economic recovery, there have been some weakness, out of consideration to avoid a relapse into recession, the Fed can only re-implementation of the quantitative easing.
6,000 billion U.S. dollars the Fed bought Treasury plan, basically in line with market expectations. From now until June, the Fed will purchase an average of about 75 billion U.S. dollars per month, the Fed said the Treasury purchase plan will be regularly assessed on the economy and financial markets. The average age of its purchase of government bonds of 5 to 6 years, suggesting that the Fed intended to reduce long-term capital through the financing costs to increase business confidence, and promote labor market recovery.
In a public statement after the Federal Reserve, the financial market reaction is more moderate, non-US currencies, led by the euro there was a certain gain, 1.41 dashed line euro, Australian dollar to trade around 1.0, but yesterday morning appeared non-US currencies some callbacks. Market was relatively flat, mainly because of the Fed's statement is consistent with market expectations, but before the market digested the Fed has been gradually re-liberal policy implications.
The global economy, the downside risks to the U.S. economy because the Fed again lowered the quantitative easing, the economy of Australia and New Zealand but probably because of the gradual U.S. economic recovery in 2011 and 2012, faced with a certain degree of upside risk. The major Asian economies will face the risk of large capital inflows.
From a long time, the Fed once again means that the Fed easing, "weak dollar" policy of continuity, we maintain long-term bearish dollar view. Non-US currencies, the euro, Australian and New Zealand will be strong. The prices of commodities and agricultural products will also be supported.
The global economy because of the weak dollar will also bring higher prices of commodities and agricultural products face a more serious risk of inflation, although this is expected from the extent consistent with the Fed, but for better economic performance of Asian economies and economies in Oceania for rising inflation may bring more serious problems, which will force these economies continue to the next one to two years to tighten monetary policy.
Meanwhile, long-term interest rates by lowering the Fed intended to stimulate the economy, the dollar will further flattening the yield curve, the dollar's low interest rates will last longer, which would lead to the U.S. dollar and other currencies interest rate further. The carry trade against the dollar will gradually rise, this will bring a global cross-border capital flows. Now it seems that the global speculative capital is still popular in Asia and Oceania economies, massive capital inflows not only bring the appreciation of the currency will also bring local asset prices, and even asset bubbles. For these economies, the monetary authorities, the reasonable and orderly monetary policy tightening, and effective financial regulation is a required course for some time.
The Fed said in a statement, the performance of the U.S. economy is currently lower than the Fed had expected, and because companies do not want to increase the manpower, which led to high unemployment, and therefore the U.S. economy faces the risk of deflation. In such circumstances, the Federal Reserve decided to maintain the 0 to a record low 0.25% interest rate to more. ANZ Bank, the Federal Reserve into raising interest rates will not be earlier than the third quarter of next year. In addition, the Fed announced it would acquire long-term treasury bonds to support economic recovery. Although the Fed has had to market a massive liquidity, but the effect of these policies began to gradually decrease and disappear, the U.S. economic recovery, there have been some weakness, out of consideration to avoid a relapse into recession, the Fed can only re-implementation of the quantitative easing.
6,000 billion U.S. dollars the Fed bought Treasury plan, basically in line with market expectations. From now until June, the Fed will purchase an average of about 75 billion U.S. dollars per month, the Fed said the Treasury purchase plan will be regularly assessed on the economy and financial markets. The average age of its purchase of government bonds of 5 to 6 years, suggesting that the Fed intended to reduce long-term capital through the financing costs to increase business confidence, and promote labor market recovery.
In a public statement after the Federal Reserve, the financial market reaction is more moderate, non-US currencies, led by the euro there was a certain gain, 1.41 dashed line euro, Australian dollar to trade around 1.0, but yesterday morning appeared non-US currencies some callbacks. Market was relatively flat, mainly because of the Fed's statement is consistent with market expectations, but before the market digested the Fed has been gradually re-liberal policy implications.
The global economy, the downside risks to the U.S. economy because the Fed again lowered the quantitative easing, the economy of Australia and New Zealand but probably because of the gradual U.S. economic recovery in 2011 and 2012, faced with a certain degree of upside risk. The major Asian economies will face the risk of large capital inflows.
From a long time, the Fed once again means that the Fed easing, "weak dollar" policy of continuity, we maintain long-term bearish dollar view. Non-US currencies, the euro, Australian and New Zealand will be strong. The prices of commodities and agricultural products will also be supported.
The global economy because of the weak dollar will also bring higher prices of commodities and agricultural products face a more serious risk of inflation, although this is expected from the extent consistent with the Fed, but for better economic performance of Asian economies and economies in Oceania for rising inflation may bring more serious problems, which will force these economies continue to the next one to two years to tighten monetary policy.
Meanwhile, long-term interest rates by lowering the Fed intended to stimulate the economy, the dollar will further flattening the yield curve, the dollar's low interest rates will last longer, which would lead to the U.S. dollar and other currencies interest rate further. The carry trade against the dollar will gradually rise, this will bring a global cross-border capital flows. Now it seems that the global speculative capital is still popular in Asia and Oceania economies, massive capital inflows not only bring the appreciation of the currency will also bring local asset prices, and even asset bubbles. For these economies, the monetary authorities, the reasonable and orderly monetary policy tightening, and effective financial regulation is a required course for some time.
I am a professional editor from Chinese Manufacturers, and my work is to promote a free online trade platform. http://www.qualitydress.com/ contain a great deal of information about antique vintage watches,electric cordless knife,pave diamond earrings, welcome to visit!n
n Your Article Search Directory : Find in Articles
Recent articles in this category:
- What Was Good About 9-11?
It is the American dream, I suppose, starting with nothing and working hard to build a successful bu - Sing For Tibet
In 1911, a revolution overtook China. The movement went across the country. By the next year, they - The Blending of Anti Terrorism Training and Military Intelligence Training
Military intelligence not only aids in the formulation of military operations, but it also plays a s - Getting an Entry Level Intelligence Job
Many people are drawn to careers in intelligence because they are portrayed as being filled with int - Military Rules of Engagement in Peace Mission
To say that the rules of engagement in every peacekeeping mission be reviewed is an understatement. - Holidays And Celebrations Across The World
It's a well-known fact that people around the globe celebrate in many different ways and for a wide - Protecting and Saving Tigers in India
The Indian government is running a campaign to save the tigers. Tiger is a charismatic animal playin - Preparing For 2012 - Some Practical Precautions
Many people believe that according to the ancient Mayan calendar, the world is coming to an end in 2 - Can GM Crops Feed and Save the World?
GM crops and the great debate has been around for 10 years and are people any closer to working out - Book Review: An Obsolete Honor - a Story of the German Resistance to Hitler by Helena P. Schrader
There are two very clear types of Historical Fiction, those that are merely set against a historical
Most viewed articles in this category:
- Ghoulish Games For Halloween
Halloween is a fun time for children. Adults presume that the plethora of sugary treats is what make - Exotic Vacations In Venezuela
Many families rely on the familiar when they are picking a vacation destination. Places like Disneyl - Unique Christmas Cards
Christmas cards come every year. You put them on the mantle and the TV or the refrigerator. At times - The Secrets Of Teaching Disaster Preparedness
Headlines are full of hurricanes, earthquakes, bird flu, terrorism, and other dangers of the world i - Bolivia, The Poorest South American Economy
People who reside in Bolivia are faced with having to overcome the fact that they live in the poores - Farc - The Revolutionary Armed Forces Of Colombia
The FARC is an organization that has long been active in Colombia. Currently numbering in the thousa - Book Review: Thanks For The Memories: Love, Sex And World War II
World War II changed things, "the lives of American men and women would never be the same. The Unite - World Globes-When Ordinary Just Won't Do
Traditional world globes are not typically found on many shopping lists. But, shopping during the ho - Global Warming Causes
One of the most serious environmental crises facing us today is global warming. It is the gradual in - Buying Property In France
At first glance it is easy to see why France is one of Europe's top tourist attractions, from the el