"for the QE2 maturity point, and the Fed's statement will be a transition period of observation, the Federal Reserve meeting may not have a major decision, but it should be on the economic outlook more worried about the information. "Will Xin, chief analyst Yang Yi-chun says.
raised the debt ceiling intend to mean that the United States has no additional financial or tax to ease the debt crisis continued to enlarge the risk of holding U.S. debt will continue to accumulate. When the United States can not resolve the debt by means of fiscal revenue and expenditure, only to continue the Banknote Printing and repayment and dilution of the debt. Therefore, the United States raised the debt ceiling World Pipe network informed, can understand the most likely continue to flood the U.S. dollar in the future currency will inevitably cause inflation to rise further. Yang Yi-jun said.
and raising the inflation target line, may be a new layout of the Federal Reserve after the end of the QE2. Also declared to have to tolerate high inflation, to maintain a more relaxed monetary policy or for a new round of quantitative wide
For a few days ago, in support of the U.S. Federal Reserve Chairman Ben Bernanke, inside the Fed is under way to explore the formulation of accurate inflation target, he announced at this meeting, a very small chance, "the past two or three months in the policy will be relatively calm.
ceiling increase of
while the CPI is no doubt to the inflation rise further to provide a space. Or higher future inflation, the inevitable requirement to improve the CPI ceiling.
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Yang Yi-jun, further said, the market some concerns over the debt crisis in the United States in August, he preferred that this is the gimmick of an American director, "The suppression of dollars, in the atmosphere of the weak dollar will help the U.S. economy recovery. Followed by any other name again to perform the QE3. It is basically Rogers express the view in early June. Last week, Soros also expressed the excessive reaction of the U.S. debt crisis in August in the market point of view
idea that precisely fit the wishes of the Federal Reserve to develop an inflation target, CPI upper limit. Just last week, Bernanke has publicly said that not increase the debt ceiling could lead to downgrades hurt the dollar a special status.
She said that the quantitative easing policy spillover to foreign countries, first of all cause inflation in emerging markets, the current conduction back home cause its own inflation. The Fed must now weigh the direction of monetary policy in inflation and economic slowdown.
former Fed governor Laurence Meyer, the Federal Reserve to develop the inflation target has been no suspense. He said: "just do not want to the Fed is too early to implement this goal, at least before the economic conditions back to near normal situation.
to industry analysts, the move was intended to establish a center of gravity to the policies, it is clear, prior to the 2% core inflation rate line can not stop the QE policy to bring liquidity offensive.
U.S. sovereign rating under pressure
loose policy space, in order to boost the economy.
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Fitch sovereign rating of the Asia-Pacific region director of the Andrew Colquhoun21 Day said, if the United States unable to raise the debt ceiling, which led to the national debt interest not paid on August 15, Fitch U.S. rating will be lowered to the partial breach of contract. He also said that the August 2, the United States have not been able to raise debt ceiling, Fitch will put the U.S. sovereign rating placed on negative watch list.
However, the analyst side of the Bank of China Institute of International Finance Weihong think, "to raise the inflation line can not be directly equivalent to the quantitative easing policy, but provides a space for further easing.
CPI limit to 5%
the meeting, the Fed will be will be announced after the rate decision and Bernanke's statement will become a major focus of market attention. 19, U.S. media reported, Fed Chairman Ben Bernanke is working internally on the development of accurate inflation target Exploratory, outsiders have speculated that the Federal Reserve may in the self-proclaimed independent monetary institutions at which the tone CPI to 5% cap, which other central banks around the world, like the establishment of inflation targets, "innovation".
Local 21, the Fed will meet for a period of two-day meeting on interest rates World Steel Pipe News , this is also the last before the ending of the second round of quantitative easing policy (QE2) to discuss interest rates.nationwide local businesses offer summary
the
Hengtai Securities chief economist Qing Yi, although analysts said the Fed substantially increased the inflation target, it will be greater than the quantitative easing policy gambling. But it is difficult to say the true intentions of the Fed move is not easing for the third wave quantization cleared their own set of obstacles.