The data show that the Federal Reserve in March 2009 launched the current round of financial crisis during the first round of quantitative easing measures to buy $ 1.25 trillion of mortgage-backed securities, accounting measures the total size of $ 1.725 trillion, nearly 70%.
November 30, Kevin Logan, chief economist of HSBC USA, predicted that the nation's job market is difficult to achieve rapid improvement, which will prompt the Fed to buy mortgage-backed securities (MBS) to further relaxation of monetary policy. Fed commitment to a long, low interest rate environment but do not have the quantitative easing policy, "the bank borrowings expected size and the rapid promotion of the price level and does not appear. He also believes that the dollar will slowly weakening.
Logan also hinted that the Fed currently has a further relaxation of monetary policy space, the lack of domestic demand and other factors make the nation's inflation rate, especially core inflation is still low. The formation of echoes in the same speech this position with the Federal Reserve Vice Chairman Janet Yellen published in the 29th position.
Logan expects the nation's unemployment rate will fall very slowly in the coming years, the Fed need to keep monetary policy loose state to continue to suppress unemployment rate; once before to take the measures failed to change the job market a recession, the Fed will have to purchase a certain size of the mortgage-backed securities, that is, once again the implementation of "quantitative easing" measures "to provide more support in this regard on the economy, on the other hand can also suppress the mortgage costs, boost the real estate market. "
However, Logan, former Federal Reserve two quantitative easing measures, the effect is not obvious, the expected bank loan size and the rapid promotion of the price level and does not appear. He stressed that the Fed commitment to a long low interest rate environment "does not have the quantitative easing policy".
Logan also noted that the dollar will continue in the coming period of time slowly weakening ". But he stressed that as the role of financial markets "safe harbor" has not subsided, "If the rest of the world in an area of crisis, the dollar will be stronger; but if the economy to maintain health status, capital outflow from the United States . "
He pointed out that high oil prices, a downturn in the housing market, the household sector debt continued pressure from the federal to local levels of government fiscal austerity, the U.S. economy will be facing long-term "wind". In addition, the U.S. economy is also suffering from the interference of external factors. Luo Genqiang tune, even though European economies might be a common implementation of fiscal consolidation measures would affect their purchasing power, but the European debt crisis drag on the U.S. economy is not the area of trade, because trade between Europe and the United States and the U.S. banking sector held by the European government bond scale are relatively limited World Pipe network informed, it touches on the U World Pipe network informed.S. banking sector held by the scale of European corporate bonds is relatively substantial "Therefore, if the European debt crisis triggered by the economic downturn, the United States will be subject to greater impact. He expects up to 50% chance of euro-zone economy plunged into recession.