Fed raises interest rates, presses pause button
Today’s point of view: the Fed raises interest rates and presses the pause button. China cuts the cost of quasi-standards. Yan Yue is in line with market predictions. The Fed announced the March interest rate meeting and pressed the pause button to raise interest rates.This is the monetary policy choice of the world’s largest economy.And China, the second-largest economy, still has a lot of room for currency choices. It is possible to continue to reduce the standards, and there is still room for small and micro enterprises to raise financing costs again.The choice of different monetary policy orientations of the two major economies in the world shows the differences in their economic development. Members of the Federal Open Market Committee (FOMC), the policy-making body of the Federal Reserve, estimated in December last year that after raising interest rates four times in 2018, it is appropriate to raise them two more times in 2019.But the current economic budget has changed their judgments, and unless there are major changes in the situation, it seems unlikely that interest rates will be raised now.The FOMC said in a statement after the interest rate meeting that it would always be “patient” before taking any further interest rate increases.The Fed currently maintains a target fund rate of 2.25% -2.5% interval. What makes the Fed sway in the direction of monetary policy?Seven years of zero interest rates have allowed the US economy to grow and have produced the longest bull market in its stock market history.But debt management has overwhelmed the US economy, so there has been a continuous increase in interest rates to bring monetary policy back to normal.But the consequences of interest rate hikes are a drop in GDP growth and 南京夜网论坛 expectations, and a rise in unemployment.This compresses the Fed’s click on the pause to raise interest rates. How much has the change in the Fed’s monetary policy orientation affected China?It can only be said that the previous influence was really great, because we had to follow them.However, the situation has changed significantly.In recent years, the independence of the national monetary policy has been significantly enhanced. Based on the starting point of the policy that serves the real economy of our country, our real economy has tasted a sweet spot and economic transformation and upgrading can proceed smoothly. China’s stable monetary policy has continued for many years, and this year it will no longer appear “neutral”, but it will not affect the overall orientation of monetary policy.Reducing the burden on the real economy, alleviating the difficulty of financing and expensive financing, and unblocking monetary policy channels are the main tasks of current monetary policy. At the press conference of the Second Session of the Thirteenth National People’s Congress on the morning of March 15th, Premier Li Keqiang pointed out that this year we must seize the idea of difficult financing and expensive financing. Economic development, the “stuck neck” of market vitality, and do more.With a multi-pronged approach, the financing cost of small and micro enterprises was reduced by one position on the basis of last year. Last year, in response to the difficulty of financing and expensive financing, the transition has reduced the deposit reserve ratio four times, and at the same time reduced the financing cost of small and micro enterprises by one alternative.This year, the model of lowering standards and reducing financing costs will continue to be adopted in order to consolidate the financial tensions of private and small and micro enterprises that have initially eased. Although our monetary policy already has strong independence, we cannot ignore the uncertainty of the Fed’s policy orientation.The industry generally predicts that the Fed will raise interest rates at least once this year, possibly in December.This requires us to make early plans, make plans in advance, and make corresponding preparations for the changes in the external economic, financial, and monetary environment, so as to better promote the overall economic transformation and upgrading.