Treasury bonds to further stimulate the U.S. economic recovery
Not surprisingly, the U.S. printing press once again announced the launch of OUTDOOR EXTENSION CORD WITH INDICATOR LIGHT the global problem of excess liquidity is destined growing. Some experts said that this may further lead to global inflation and currency turmoil in the markets.Federal Reserve monetary policy decision-making Federal Open Market Committee November 2 to 3 regular meeting held monetary policy decision-making, 3 announced the launch of the second round of quantitative easing monetary policy, the decision before the end of June 2011 to purchase 600 billion U.S. dollars of U.S.
Treasury bonds to further stimulate the U.S. economic recovery.The committee said the Fed will be implemented gradually after the middle of the plan, is expected to purchase 75 billion U.S. dollars per month long-term U.S. Treasury bonds. Fed is expected, they are buying U.S. Treasury bonds of the average length of 5 to 6 years, 35% held by the temporary relaxation of the ceiling.The Fed also announced that the federal funds rate to 0.25% at 0 level of the same, to maintain the current discount rate unchanged at 0.75%. In response to financial crisis and economic recession, the Federal Reserve in December 2008 to the current federal funds rate to lowest level in history, and has remained at this level.
The banknotes issued by the United States once again, triggering the world's major economies, especially in emerging market countries concerns. Because from the first quantitative easing monetary policy to see the situation, the Fed made a lot of dollars and do not stay in the United States, did not stimulate further private sector investment desire, but a large number of quantitative easing, the Fed made to the new influx of funds national market.
In the past few months, emerging markets asset bubble continues to expand, the rising exchange rate of its currency, rising commodity prices is pushing up inflation expectations in emerging countries.The first round of quantitative easing Federal Reserve monetary policy began Nov. 25, 2008, financial crisis, the Fed announced it would buy government-sponsored enterprises Fannie Mae, Freddie Mac, Federal Home Loan Bank's direct real estate-related debt, Two rooms will be purchased by the Federal Government National Mortgage Association guaranteed mortgage-backed securities, marking the beginning of the first round of quantitative easing.
Together in March 2009 to the end of the year before the fall of 300 billion U.S. dollars to buy longer-term Treasury securities, Federal Reserve policy of quantitative easing in the first round of the implementation of a total of 1.725 trillion U.S. dollars of assets purchased.April 28, 2010, the Federal Reserve interest rate statement issued after the meeting, not to mention and purchase agency mortgage backed securities and agency debt issues, which marks the first round of the Fed's formal end of quantitative easing.For the United States to restart the printing press, some experts said that in the United States continues to Maintaining a Low Level interest rate policy and massive quantitative easing monetary policy background, this will allow emerging countries to further appreciation of the currency to weaken the emerging countries in global competitiveness ; followed by the influx of hot money led to asset bubbles increase; Furthermore in order to prevent future large outflow of hot money, Malaysia, Thailand and other emerging countries have to suffer to further strengthen capital regulation.
