2010年11月1日星期一

Federal Reserve two round quantification loose points of no return

This Wednesday's Federal Reserve Open market Committee (FOMC) will discuss the rest conference to become the big event - - market universal estimate which the global market will raise the head hoped the Federal Reserve to announce at the appointed time the second round quantification will be loose, namely so-called QE2. the analyst believed that the Federal Reserve quantification loose already did not have the rear guard, but the present about market responded the key will fall the future to buy above the debt scale.

At a glance, US has welcomed a series of not bad economic data in the last week: Five month strongest durable goods order form data, surpasses the anticipated in September house selling data, slightly has the improvement in October consumer confidence index, as well as third quarter GDP grows 2% temperately.however still did not have a sign to demonstrate that these data can reduce the US to reach as high as 9.6% unemployment rates. Last Friday's GDP report showed that in the third quarter GDP grows the driving influence is 2.6% expense year rate of increment, but the wages and the employment rate actually with difficulty follow the expense to grow, means that this driving influence lacks sustainable.

Federal Reserve President Bonake once in October 15 speech estimated that the American economic prospect is gloomy, suggested he supports the new round currency stimulation policy, resists the unemployment rate which stays at a high level and prevents the price to fall into the vicious circle the deflation trap. the economic prospect improvement, will not let the market restart the quantification loose policy to the Federal Reserve anticipated nearly unprecedentedly firm. “already did not have the rear guard now, only if FOMC is willing to brave to let the market disappointed risk.”

The Swiss credit said in October 29 report, “the Federal Reserve faces the main challenge is discusses in the rest conference in November 2~3 to decide how to transmit and carry out this plan best way.”

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US dollar depreciation helps US to go out of the deflation






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