This Year, Monetary Policy Will Usher In A Good Opportunity.

With the Federal Reserve's interest rate hike expected to rise in June, more and more people believe that the key to raising interest rates is China's attitude.

In the early June, the eighth round of China US strategic and economic dialogue will be held in Beijing, perhaps a good opportunity for high-level exchanges between the two countries.

Chinese officials are trying to confirm whether the Federal Reserve will raise interest rates in June or wait until July, according to foreign media quoted on Wednesday (May 25th), who do not want to be identified.

Such policies can make better responses, including the plan to raise the issue to the US side in the Sino US strategic and economic dialogue.

But then the central bank denied it.

But the Fed's Conference on interest rates is about to be held in June 14th. The market speculated that the 6 and 7 th 6 talks were the best, and last chance, for China and the United States, the two largest economies in the world to sit down and discuss monetary coordination policies.

China hopes to reduce the link between the RMB and the US dollar so as to avoid capital flight.

The Fed intends to start the process of raising interest rates.

In the past nine months, the market has fully seen the bloody conflict between the two countries' target conflicts: the US interest rate increase stimulates the [0.00%] outflow of Chinese capital, and the market turmoil caused by the sharp depreciation of the RMB in August last year has become the biggest obstacle for the fed to raise interest rates.

After a high-profile announcement of a possible increase in interest rates in June, the Fed's biggest concern is the devaluation of the renminbi again.

Foreign media expect China's capital flight to reach 1 trillion US dollars in 2015, the highest in history.

The Sino US strategic and economic dialogue will be the last of Obama's term.

Fisher, vice chairman of the Federal Reserve (Stanley Fischer), and Jacob J. Lew, the US Treasury Secretary, attended high officials who were struggling to avoid another financial upheaval.

Eswar Prasad, the head of China's IMF division, said that China and the United States share common interests and make the other side unexpected in monetary policy, which will restrict their own policies to expand their space.

Deutsche Bank reported this week that the market did not respond to June.

There is a negative feedback loop between the Fed's interest rate increase and the global market response, and the most important factor in this cycle is the Chinese renminbi.

Kocherlakota, a former Federal Reserve official, has long said that US monetary policy should be included in the United States and China's highest agenda.

Chr (34) Sino US monetary union Chr (34) is not only related to China's economy, but also related to the global financial stability and the US economy.

He also believes that if the Federal Reserve continues to tighten its policy in 2016, it may lead to the sudden disintegration of the alliance, resulting in chaos which is unfavorable to both sides.

Oxford Economics Asia Pacific Economic director, Oxford

If the Fed's rate hike is faster than expected, it will significantly increase the pressure on China's foreign exchange market.

Sassan Ghahramani, chief executive of SGH Macro Advisors, a policy research firm, said that the Federal Reserve's interest rate hike this summer has been widely recognized by the market. It may raise interest rates again in the next year, while Chinese official Chr (34) should be very sensitive to the potential spillover effect of the US interest rate to RMB (CHr) (34).

Chr (34) Chinese officials' fears are unlikely to have a big impact on the Fed. Michael Hanson, a senior economist at Bank of America, said Chr (34) the Fed concluded that the global market could cope.

Chr (34)

Foreign media said that China's monetary policy makers face a very difficult task, on the one hand, to ensure a minimum economic growth rate of 6.5%, on the one hand, we must reduce the dependence of the economy on leverage.

And the capital flow brought by the Fed's interest rate increase will make the situation even more serious.

This week, citing a previously undisclosed closed door meeting minutes, pointed out that some economists and bankers directly asked the Central Bank of China to stop fighting against the financial market and let the renminbi depreciate.

However, a central bank official denied the proposal and said the first task is to maintain the stability of the RMB exchange rate.

However, China's expectations for Chr (34) to stabilize Chr (34) are unlikely to prevent the fed from raising interest rates this year.

Some Fed officials say they are more concerned about the domestic economic situation than the international financial environment.