China Gold Network reported on December 16th that the two-day policy meeting started by the Federal Reserve on Tuesday is expected to turn monetary policy and end the era of US loose monetary policy. Rates are raised as the economy becomes increasingly normal.
The Federal Reserve will announce its policy decision on Wednesday, and the market expects it to "raise interest rates" by 25 basis points. After that, Federal Reserve Chairman Yellen will clarify the latest Fed policy statement at a press conference. TD Securities analysts said they expect the statement and the latest economic forecasts of policy makers will be hawkish, that is, stressing the possibility of rate hikes in every meeting.
Although the Fed's first action is expected to be more moderate, it is still worrying.
After the Fed raises interest rates, we need to see that the US economy continues to grow next year, the unemployment rate continues to remain low, and the most worrying inflation rate can also rise; only then will the outside world think that the Fed has succeeded.
The Federal Reserve under Yellen carefully removed most promises of maintaining low interest rates from its policy statements and ended its asset purchase program launched during the crisis.
As unemployment rates steadily decline this year, the reasons why policies continue to exist in crisis periods have gradually decreased, and policy-making officials feel they can balance the hikes pursued by hardliners and the slow rate hikes that follow.
However, everyone's views are not completely consistent. Some Fed policy-making officials have said they are worried that the global economy will be too weak, and the Fed will not be able to withdraw its crisis-time policies from the stage of history by just one's own efforts. The ILO said on Tuesday that sporadic jobs and wage growth remained too weak overall to stand the test of tighter financial environment.
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