Increases in interest rates will only is the real challenge faced by the fed

Cut the QE may not difficult, but the exit road is not flat, interest rates will is a real challenge faced by the fed. Since 2008, the fed has cut short-term interest rates close to zero,JIS 5K Plate flanges to help the economy from recession to recovery. The fed has promised to maintain short-term interest rates near zero, until the unemployment rate fell to 6.5% or less.

Credit suisse is expected, the federal reserve will insist, shrinking QE, net purchase assets down to zero, short-term interest rates are still close to zero for a long time. Even if short-term interest rates eventually rise, the fed will not sell assets,marine steel butt-welding fittings elbow but to allow the maturity of bonds and normalization of amortization.The fed will be released at the meeting on Wednesday for the first time in 2016 economic forecast, the latest economic data (310358, fund it) prediction (especially) the unemployment rate will affect the market rate for the future direction of the judgment. Last publish economic forecast is in June, when the forecast is to the fourth quarter of 2015, the U.S. unemployment rate will fall to about 6%, the rate of inflation is close to 2%.

Expectations for the fed to cut QE have greatly pushed Treasury bond yields, and also push up global sovereign bonds and corporate bond yields."The time has come for a higher interest rate." Turkey's deputy prime minister Ali Babacan (Ali Babacan) said last week in the summer davos BBS.Chief economist at high frequency economics,Electric Resistance Welded carbon steel pipe wei for berg (Carl Weinberg) said: "the market is not willing to see the U.S. interest rates rise, the rest of the world is not ready to face higher borrowing costs."

When the U.S. economic recovery momentum in early 1994, the fed has also opened monetary tightening, the results not only in the United States bond market collapse,90deg Short radius carbon steel elbow all global markets. ECB executive board member, Mr Joerg (his) not long ago, warned in a higher degree of globalization today, the fed tightening global spillover effects may be more than 1994 years.

To prevent interest rates as the us, the bank of England and the European central bank interest rate policy has been introduced in the summer "forward-looking guidance", trying to convince markets that the economic recovery to a satisfactory level before the central bank will cut its benchmark interest rates at low levels. But so far, the effect of predictive guidance is limited, Britain and the euro zone's long-term borrowing costs continue to rise.