QE4 Further Relaxed Expectations Strong, The Fed Called Pushing QE4 Imperative.

P, the Federal Reserve will usher in the last conference on interest rates this year.

Although the US's latest monthly employment report released before the meeting is better than expected, the market and agencies are still keen on the announcement that the Federal Reserve will announce a new round of "a href=" http://sjfzxm.com/news/index_cj.asp "/a", which is commonly known as QE4, this week.

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< p > < strong > further loose expectation is strong < /strong > < /p >.

(P) the Federal Reserve held interest rate meetings on the 11 and 12 days of two days, and the final declaration of interest was released at 1:30 a.m. on Thursday, Beijing time.

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In September this year, the Federal Reserve announced the launch of the third round of "non cap" asset acquisition plan (QE3), which bought $40 billion of mortgage backed securities every month. P

In addition, the Federal Reserve's $45 billion monthly reversal operation will expire at the end of this year.

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< p > from the current findings of the major US agencies, it is expected that the Federal Reserve will take further easing measures at this meeting.

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< p > Bloomberg's survey of a number of US government bond dealers shows that the Federal Reserve will announce on the 12 day that it will buy US Treasury bonds at a maximum of US $45 billion per month and keep the benchmark interest rate close to zero until 2015.

Most of the first tier traders are big Wall Street firms, who are eligible to trade directly with the Federal Reserve. Their views are usually more representative.

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< p > and a survey released by Thomson Reuters last week shows that most analysts expect the Federal Reserve to announce a new round of treasury bond acquisition plan this week to replace the upcoming "short selling long" twist operation.

As many as 56 of the 60 analysts interviewed said the Federal Reserve would announce a new Treasury bond purchase plan after the end of this week's meeting, with a median estimated value of $45 billion a month.

In other words, the Federal Reserve will buy a total of US $85 billion a month for a period of time.

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More than P, most analysts interviewed expect that the Federal Reserve will start to use quantitative indicators such as inflation and unemployment rate as a reference for future policy exit.

The median expected value of the respondents is that the authorities may set the threshold for inflation and unemployment at 2.5% and 6.5% respectively.

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< p > < strong > "fiscal cliff" is still a big problem. < /strong > /p >

"P >" from the Federal Reserve itself, it will not be surprising if this week's "a href=" "http://sjfzxm.com/news/index_q.asp" > QE4 < /a >.

Last week, many Federal Reserve policymakers, including Brad, President of the Saint Louis fed, said that the authorities should further maintain or expand quantitative easing policy next year.

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< p > in fact, after Obama won the election again earlier this month, the outside world guessed that this paved the way for further easing policy of the Federal Reserve.

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< p > it is worth mentioning that two days before the Fed's interest rate, the US government's latest non-agricultural employment data far exceeded expectations.

But even such a strong employment report has not shaken the expectations of QE4 from all walks of life.

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< p > November, the United States increased the number of new non farm jobs to 146 thousand, much higher than expected 80 thousand, while the unemployment rate dropped from the expected 7.9% to the four year low of 7.7%.

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After the release of the report, analysts who were surveyed by Thomson Reuters insisted that the Federal Reserve would continue to implement quantitative easing firmly, P.

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Charles, director of the Treasury Bond Trading Department of Scotiabank, Canada, said that although the November non farm employment data boosted risk appetite, the fiscal cliff was a bigger problem for investors and the Federal Reserve.

Therefore, the Fed may still launch QE4 or expansion version of QE3 this week.

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< p > < strong > QE4 is imperative under the condition of "/strong > < /p >.

Lawrence Mayer, the founder of the P, a leading American economic research institution, said that the Federal Open Market Committee will continue to buy home mortgage bonds this week, and that it will replace the reverse operation plan with the purchase of long-term treasury bonds.

The agency pointed out that although the non farm employment data released last week far exceeded market expectations, in October, the us a href= "http://sjfzxm.com/news/index_s.asp" > the apparel industry inventory < /a > and the consumer confidence index declined, so the company decided to reduce the fourth quarter GDP growth forecast value to 0.5%.

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P, a Credit Suisse economist, wrote in a recent blog article last week that the Federal Reserve is expected to announce this week that it will supplement the funding gap of $45 billion a month due to the expiration of the reversal operation by Purchasing Treasury bonds.

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< p > Tao Dong said that the US monetary authority is expected to maintain its current liquidity injection rate by buying US $40 billion in monthly mortgage backed securities (MBS) and US $45 billion treasury bonds.

At least, next year, the Fed will not have a substantial QE exit policy.

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< p > many other big banks hold similar views.

UBS Securities economist 10 released a report that QE4 is imperative.

It is expected that at the end of the 12 session, the Federal Reserve will announce QE4 as scheduled, that is, by buying US $400 to $45 billion in long-term treasury bonds every month to replace the upcoming "reverse operation".

Although the industry points out that the implementation of QE3 and QE4 will further expand the Federal Reserve's balance sheet, making it more complicated to exit.

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