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FED Officials' Speeches Show Differences &Nbsp; Need More Data Guidelines.

2012/3/28 18:44:00 20

Monetary Policy Fed Economic Data

On Tuesday (March 27th), there were four.

Federal Reserve

The speeches delivered by the officials, including their "hawks", "pigeons" and "fence sitters", were clear in their speeches. This shows that there is no clear framework for how to link up the follow-up policies within the Federal Reserve, and the US "twist operation" will end in June.

What policy is adopted is a problem.


In his speech yesterday, the hawk was represented by Fisher, chairman of the Dallas Federal Reserve, Richard Fisher. He said the Fed had done its best to support the economy and did not need more stimulus to support the economy.


When Fisher spoke in March 22nd, he said that the economic recovery of the US is increasing and there is no need for more easing at this time.

monetary policy


"Pigeon" is the representative of Boston Fed chairman Rosengren (Eric Rosengren). Rosengren said on Tuesday that if the US economy is not performing well, it is necessary to introduce more loose monetary policies to support the economy.


Dudley, chairman of the federal reserve two and NY FED (William Dudley), said on Tuesday (March 27th) that the US economy is expanding moderately and the pressure on the global financial market is a huge downside risk. However, the US Federal Reserve (FED) is not expected to take more measures to control the potential spillover effect of the European debt crisis. "(FED)


Dudley is a typical "fence sitter". On the 19 th of this month, he has said that the economic data is slightly optimistic, and has recovered or has taken a firm foothold, but it is too early to conclude that the United States is out of danger.

QE3 depends on the economic situation and has not made any decision on QE3.


Bernanke (Ben Bernanke) appeared to be mature and prudent. Bernanke said on Tuesday (March 27th) that the US economy had improved, but the Fed could not rule out the possibility of launching the third round of quantitative easing (QE3).


Bernanke believes that the recent US economic news is good and needs to be cautious to ensure sustained economic improvement.

It is too early to claim victory in the recovery.

In any case, the unemployment rate is still high, and the housing market is also in a doldrums.


Huitong believes that Bernanke's speech on Tuesday said he did not exclude the fact that QE3 did not mention QE3's supplement to his previous speech, and that he could not explain his change of attitude.

If the economy slows down or the unemployment rate starts to rise, then the possibility of launching a new round of bond purchases is not, but it is not necessarily so.


Bernanke's stance is still cautious, and the next policy direction may need more.

economic data

Provide guidelines.

He will give more decisions to economic performance, so the short-term US economic data, especially the non-agricultural data in April, may be the key to the next step of the foreign exchange market.


Bernanke's speech also led to a change in the futures market linked to the Federal Reserve's key short-term interest rate, the federal funds rate.

Although the Fed has said since January that it will not raise interest rates until the end of 2014, investors in the market have begun to expect the fed to raise interest rates as early as 2013 in the past few weeks.

After Bernanke spoke, the market showed that investors were more convinced that the Fed would start raising interest rates in early 2014.


Miller, President of Summit Place Financial Advisors, an investment consultancy, said investors who followed the improvement of the labour market had begun to expect interest rates to rise, but Bernanke changed them.

He said that despite the decline in the unemployment rate, Bernanke said on Monday morning continued to implement the loose monetary policy.

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