abstract: meeting minutes for tightening of the Federal Reserve on Wednesday injected a dose of booster, most members believe that the Fed may need to earlier-than-expected tightening of monetary policy and asset sales, Goldman Sachs Group (Goldman) ignoring the recent weak economic data, is still optimistic about the United States the second half of 2011 economic, dollar rally.
Wednesday (18th), the Federal Reserve (FED) meeting minutes for tightening injected a dose of booster, most members believe that the Fed may need to earlier-than-expected tightening of monetary policy and asset sales, Goldman Sachs Group (Goldman) ignoring the recent weak economic data, is still optimistic about the United States the second half of 2011 economic, dollar rally.
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fed currency policy developed who last month began on exit currency stimulation plan expand discussion , End of the first investment policies, then should be to raise interest rates and asset sales.
United States Federal open market Committee (Federal Open Market Committee) April 26 minutes, nearly all Federal Reserve officials felt that the reduction of mortgage-backed securities is the first step implemented exit policies, a majority of the members tend to raise rates gradually after the sale of agency debt for the first time, and the sale of agency debt will communicate with the public in advance, will be adjusted according to the situation changes in stride.
at the end of June after completing the 600 billion dollar debt scheme, how to exit the record as soon as possible to stimulate policy become the focus of Federal Reserve officials discussed.
President of the Minneapolis Fed kexuelaketa (Narayana Kocherlakota) said he supported the Federal Reserve to raise interest rates this month. 0-0.25% started in December 2008 the Federal Reserve to maintain rates unchanged.
St Louis Fed President Bullard (James Bullard), said that while there were signs of easing of inflation in the near future, the Federal Reserve could still take during the year, including the reduction of balance sheet contraction.
Brad said, the Fed tightening measures may be in the year. He personally inclined and believe the Fed will take priority on the balance sheet of the monetary policy, after expiration of bonds held by the Fed is expected to be allowed to reduce the size of the balance sheet.
in addition, several members considered that the increased risk of inflation implied the Fed may need to earlier-than-expected tightening of monetary policy, some members said the Economic Outlook or risk a major change will only cause the fed to further asset purchases.
, Federal Reserve tightening is expected to boost dollar index 75.25 quickly pulling 25 points in the vicinity, 75.5 per cent.
Goldman bullish on the second half of United States economic, the dollar rallied to
sector Jim O'Neill of Goldman Sachs Asset Management said on Wednesday that despite recent United States more weak economic data released, but United States economic growth continues to be able to recover in the second half of 2011 and boost United States stock market and dollar.
Tuesday (17th) according to the United States in April the first drop in manufacturing output in 10 months, Japan earthquake caused parts shortages and sharp decline in the housing construction activities also. These show that United States economic start negative in the second quarter.
O'Neill said, the recent United States economic data disappointing, but the data is transient, and and Japan earthquake and tsunami impact supply chain related. Expect the second half of 2011 economic growth will not be less than 3%, is estimated to be between 3-3.5%. If that is the case, the stock market will rebound, and the bond market will go down.
he pointed out that the United States economy is successful, during the slow return to balance, consumption does not, as in the past become economic driving force, but better export and investment sector, which is good for the stock market in the long term.
O'Neill pointed out that on the basis of the judgment on the Economic Outlook, US dollar/Yen last will be the winner, at the end of dollar/Yen is expected to rise to the level of 90.
