The Federal Reserve'S Monetary Policy Decision Is Looming

The Federal Reserve will hold a two-day monetary policy The meeting, which was an important meeting held at the end of the second round of quantitative easing (QE2), attracted much attention from the market. Federal Reserve Chairman Bernanke will also be interviewed by the media after the meeting, and his wording is the focus of investors' attention.

Economists do not expect the Federal Reserve to announce major decisions this week. It is widely expected that the Federal Reserve will keep the ultra-low interest rate of 0-0.25% unchanged. Some analysts believe that at this meeting, the top officials of the Federal Reserve may discuss whether the European debt crisis, if worsened, will endanger the fragile U.S. economy. Bernanke may suggest that the Federal Reserve is very concerned about the European debt crisis. If the crisis worsens, it will take countermeasures together with the European Central Bank.

The Federal Reserve launched QE2 in November last year and plans to purchase $600 billion national debt , which will expire at the end of this month. Analysts expect Bernanke to reiterate that QE2 will end as planned. After the last meeting, Bernanke acknowledged that the US economy was in a weak state, but he believed that this situation was temporary.

Previously, Goldman Sachs released a research report saying that the US economic growth forecast for the second quarter would be lowered from the previous 3% to 2%. Goldman Sachs predicts that the current US economic situation is not enough for the Federal Reserve to consider launching the third round of quantification Loose policy 。