The fed the benchmark interest rate at a very low level of the time limit for acceptance from previous mid 2013 to 2014 at the end of the news of the extension, the market to make positive reaction. 25 New York stock market index closed up all three, the dow rose by more than 0.6%, the s&p rose nearly 0.9%, and the nasdaq rose more than 1.1%; The New York markets of major currencies dollar down. Explain the fed not market expected move, market reaction is the enthusiasm of the parties.
The author thinks that the fed made the decision to extend the time limit ultra-low interest rates a important reason is, after the fed will be extremely low interest rates until mid 2013 to rebounded very good result. The economy is in a downturn condition has settled down the employment rate began to recovery, consumption has recovery signs. Verify the very low interest rates, the fed to maintain the decision is correct and effective. This established the federal reserve will keep interest rates low in term fuss. At the same time, although the economic situation steady, but growth is still slow, while the unemployment rate the size also not very large, the real estate market is still depression. As the federal reserve chairman Ben cheap new era hats bernanke said, by the European debt problem influence, the American economy still faces a challenge. The decision to keep interest rates low in order to let investors is peace of mind.
The American economy for out of the financial crisis in the mire, for to boost employment is multi-pronged strategy, simultaneously. Obama in the latest state of the union speech about to boost the economy the main content. Promote manufacturing recovery, speed up the clean energy industries development, increase in infrastructure investment, encourage innovation, strengthen the American worker skills training. Provide preferential treatment in tax policy, reverse jobs' outsourcing 'trend will jobs domestic to stay in the United States. Reduce tax loophole, improve the wealthiest individual income tax rates of income, earn more than $1 million of the wealthy pay personal income tax rate income should be no less than 30%, according to the United States working class of the year salary tax tax cuts and so on. And among them the fed's monetary policy tools but also play a huge role.
The federal reserve has said that, in promoting employment to make efforts. But, we pay attention to, the federal reserve in desperate implementation super loose monetary policy, wantonly $water at the same time, and have not forgotten and regardless of domestic inflation. The federal reserve has said that, since December last year the inflation problems have been suppressed, and determined the 2012 will inflation rate of 2% in the control. 2%, lower than the international practice of control 3% 1%, lower than the 5.4% of the 3.4% inflation last year. So low inflation eventually benefit is of ordinary people.
This indicates the fed still don't rule out a new implementation of quantitative loose (QE3) of possibilities. Bernanke said in the meeting, the fed still has many deal with difficult economic situation measures, such as necessary will implement new loose policy. Experts predict, will be the first QE3 in mid-march implementation. The author thinks that, the United States in order to its economic at all, regardless of the world, regardless of the special position $extremely discount nfl jerseys selfish thought, roll out QE3 not impossible. If the United States once again to put on the market by dollars, then, countries all over the world, including China will impact.
For China, massive foreign exchange reserves, huge national debt shrink devaluation and the input type of China inflationary pressure and economic impact will be inevitable. In this case, if the price can be pressed, the author thinks that, monetary policy should not maintain close condition, should moderate loose in response to the flood impact $. At the same time, China's economic environment to monetary policy has also had the subtle change appeal, namely: China's economy continued to slide condition, also ask monetary policy tools can't last too tight.
Fortunately, from the fourth quarter of last year, after the present Chinese inflation from month to month down trend, it greatly ease the macroeconomic policy dilemma pressure. To cope with the monetary policy from the impact obligate space operations.