Foreign media: The Fed strongly supports internal reduction of quantitative easing policy

Original title: Foreign media: The Fed strongly supports internal reduction of quantitative easing policy, February 20, according to foreign media reports on the 20th, the Federal Reserve (Fed) at the January meeting There is almost no doubt about the slow asset purchase. The analysis pointed out that this is a clear sign that the Fed will continue to reduce the size of asset purchases unless there is a major shift in the US economic outlook.

According to reports, the minutes of the Fed’s January meeting showed that only two officials expressed concern about slowing asset purchases. This seems to indicate that despite a series of weak data in the US economy recently, the Fed may again reduce its asset purchases by $10 billion to $55 billion in March.

The Fed began to reduce its monthly asset purchases by $85 billion from December last year. Asset purchases are intended to drive down long-term interest rates. Since then, the United States has released some disappointing economic data, although many seem to be caused by cold weather.

& ldquo;I have come to the conclusion that the current economic situation is better than a year ago and earlier,” Atlanta Fed President Dennis · Dennis Lockhart In a speech yesterday, “I insisted that the outlook is promising. From the fundamental factors, it has greatly improved.” & rdquo;

The minutes of the meeting indicated that Lockhart’s views represented the consensus of the Federal Open Market Committee (FOMC).

The minutes of the meeting also showed that the Fed is preparing to revise the forward-looking guidance on the future trend of interest rates. The current unemployment rate in the United States is close to the Fed’s 6.5% rate hike threshold.

The Fed has said that it will not raise interest rates until the unemployment rate falls below this threshold, but the unemployment rate has fallen faster than expected and has now fallen to 6.6%, so this threshold is no longer on the Fed. Interest rate hikes provide useful guidelines.

According to the minutes of the meeting, the Federal Open Market Committee has different opinions on whether to implement new digital guidelines or to add a description of the economic situation that prompted the Fed to raise interest rates. The minutes of the meeting made several choices, but did not disclose which option the Fed preferred.

Responsible Editor: Zhang Xiaofang

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