Earlier today, the U.S. Federal Open Market Committee (FOMC) announced interest rate policy statement. At this meeting, the FOMC decided to maintain its benchmark interest rate to 0.25% of the target range unchanged, in line with the market widely expected, decided to continue the highly accommodative stance of monetary policy.
Federal Reserve just released the latest economic forecasts, the central tendency of the 2012 real GDP growth rate is expected to be 2.4% -2.9% more than expected in January of 2.2% -2.7%; expected for this year's unemployment rate from 8.2 percent in January to -8.5 dropped significantly from 7.8% -8.0% World Steel Pipe News , which is a good sign for the U.S. economy, also means the possibility of the third round of quantitative easing (QE3) decreased.
Wednesday, the Fed interest rate decision statement, Chairman Ben Bernanke said that on a quarterly press conference meeting on interest rates compared convened in January, the decision-makers on inflation worries more than economic growth. This meeting on this year's economic growth is expected and the unemployment rate is expected to slightly improve, while a slight increase in the inflation rate expected, but basically had not crossed the 2% red line, which is the Fed has not taken a more lenient policy reasons. However, if necessary, the central bank is ready to implement more policies to promote sustained economic recovery.
For the management of financial institutions "too big to fail", Bernanke said that this is an important reason for the financial crisis, the Fed is the end of this issue, including higher capital requirements and more stringent supervision of these institutions . In addition, the Fed is planning to dissolve a number of large financial companies.
Bernanke called on the U.S. Congress should take action as soon as possible to tackle the problem of fiscal policy expires at the end of this year, Congress should act with caution so as not to undermine the economic recovery process. Bernanke worried about is the implementation in early 2013, tax increases and cost-cutting measures, may make the Fed's job more difficult,
In June, the Fed announced in September last year, "distort the operation is about to expire, asked in June whether to implement the new policy, Bernanke said that any monetary policy the Fed to achieve employment and tools of the inflation target, the central bank did not change the current strategy remains highly accommodative monetary policy. Before start a new round of easing, the Fed will carefully study the recent economic data to make a decision.
The meeting on interest rates the Fed to raise the expectations of economic recovery, Bernanke said the economic recovery has been slow, despite the economic crisis over the past three years, but the unemployment rate is still highest in the 8% level, this is a difficult long-term the recovery process.
When a reporter suggested that the Fed is not doing enough, the unemployment rate is still high, Fed Chairman Ben Bernanke responded by saying: the Fed has done a "very bold and active, if the economic situation continues to worsen, the Fed is ready how to deal with. The same time, the Fed is adjusting to seasonal factors, the impact on employment, expected 150000-200000 jobs increased each month this year.
About the recent rising inflation, Bernanke said rising oil prices caused inflation is temporary, the current level of inflation is close to the 2% target in the long term inflation expectations remain stable World steel pipe network editing .
Fed Chairman Ben Bernanke said that this meeting by the 2012 U.S. economic growth is expected, but if the economy continues to deteriorate, the central bank is ready for more measures to promote sustained economic recovery.