reporter Huang Jihui
recent United States publication of economic data overall to be good, many senior officials of the Federal Reserve monetary policy stance in the near future, has to test market reaction was intended. Parties are expected, the Fed will continue on the April 26 meeting to discuss whether should end second round of quantitative easing monetary policy according to schedule (QE2), which may release more policy signals. Particularly worthy of mention is that this will break the practice of the Bonan grams, Fed Chairman, speech in the media after the meeting. Markets expect Bernanke to more clearly explain the Fed's monetary policy prospects.
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currently United States economic steadily recovery , Some fed high think that they can tighten monetary policy at the appropriate time, bring support to the dollar.
United States Chairman of the Richmond fed Lake, recently said that, based on the current economy and the Outlook for inflation, the Fed may raise rates before the end. He also said that the rise in inflation in the past 6 months. Mortgage market can easily withstand the Fed mass settlement of mortgage-backed securities (MBS) positions.
United States former President of the Dallas Fed luobote·maikedier said, hope that the Fed can now begin to reduce the size of the second round of the quantitative easing policy, and will reduce the number of purchased after postponed until June this year, and phase out loose monetary policy. He expected the Federal Reserve will raise interest rates by the end of this year.
President of the Philadelphia Fed Prosser said a few days ago, when the machine comes, the Fed will tighten monetary policy in the near future, and exit after the massive easing measures implemented. He stressed that the United States economy since the summer of 2010 to get a more powerful engine of growth, is currently on a more solid basis for moving on.
current Deputy of the Federal Reserve President Janet Yellen is considered, in the United States unemployment rate is high, and basic inflation trend under mild conditions, ultra loose monetary policy still applies. New York Federal Reserve Bank President Dudley also believes that the rise in oil prices may push up the inflation rate, but this will only be a short-term phenomenon, the Federal Reserve should not hurry to tighten monetary policy.
expect Bernanke answering
United States Government's latest statistics, United States March consumer price index (CPI) months rose 0.5%, an increase of 2.7%, largest increase since December 2009. The basic data in line with market expectations. Per cent from March, the core CPI rose 0.1% 0.2% of lower than expected, an increase of 1.2%.
said CITIC Securities Economist Hu Yifan, the data prompted CITIC Securities by 2011 year United States inflation forecast, from an increase of 2.3% per cent to 2.7%, and in August reached peak of 3.1% per cent. The Federal Reserve will not be too worried, because core inflation at a low level. In addition, the promotion of consumer confidence and inflation expectations stable or fed themselves persuaded its adequacy policy played an important role, which means that the second stage of quantitative easing monetary policy will end in June, the policy will not be extended, and from the quarter of 2012 began putting in place tighter monetary policies.
of the Federal Reserve announced on 13th "Beige Book" report says United States economies continued to expand. Industrial production and consumption continue to pick up, recruitment activities remain active in manufacturing, weaker job market has improved. Commodities and raw materials costs led some enterprises to improve product prices, prices passed on to consumers of various trades with different capacities.
for Fed Chairman Ben Bernanke will be released to the media after the meeting in April on the income statement. Bernanke is expected to explain to the markets of the market, how the Federal Reserve intends to maximize economic growth and inflation under control. The Fed said that "introduction of the media conference, intended to further strengthen the Federal Reserve monetary policy clarity, and timeliness of communication. "But there are analysts said, despite media launches to give Bernanke a chance to clarify the error analysis of market to the Federal Reserve's monetary policy, but the market is likely to repeatedly misunderstood Mr Bernanke's words, his position requires great care.
