The US Federal Reserve Outlines The Policy Exit Route &Nbsp, And The Policy Turning Time Is Hard To Judge.

Federal Open released by the Federal Reserve on May 18th market The minutes of the April meeting of the Committee showed that at the present meeting, the high-level Federal Reserve Committee held extensive discussions on "withdrawal".

Most participants tended to end the expiration date. bond Reinvestment of principal as "currency" policy The first step towards normalization is to take measures to raise short-term interest rates before selling securities assets. Most policymakers say that "exit" should be carried out step by step and adjusted according to the changes in the economic environment. However, the minutes of the meeting also pointed out that the discussion of "withdrawal" does not mean that monetary policy Austerity measures must begin soon. Analysts believe that the relevant discussions show that the Fed is trying to assure investors that it has the ability to control the size of portfolio and ultimately raise the benchmark interest rate. In the wake of the new round of quantitative easing policy, some Fed executives said, "only when the economic outlook changes significantly will support the adoption of the third round of quantitative easing (QE3)". In anticipation of inflation, the Fed's top brass is expected to see this year's impact on energy and food prices. Inflation rate It will rise, but most participants believe that price increases are only temporary.

Although consensus has been reached on exit procedures, Fed officials are still divided on the timing of exit. Kucher La Cotta, chairman of the Minneapolis fed, tends to raise interest rates during the year. Philadelphia's Federal Reserve Chairman, Proso, also suggests tightening policy in the near future, while Dudley, chairman of the New York Federal Reserve, believes that the Federal Reserve's goal of achieving price stability and full employment is still far away. In the three heads of the Federal Reserve Chairman Bernanke, vice chairman Yellen and New York Fed chairman Dudley, there is no need to rush out. Christopher Wood, a securities strategist at CLSA, believes that the Federal Reserve will not raise interest rates in the next two years as long as Bernanke continues to chair. He said Bernanke had no reason to raise interest rates unless the currency turnover rate increased.