Federal Reserve Minutes This Week, QE Cuts And Interest Rates Are Expected To Become A Highlight.

Last week, the US dollar index (P) came out pretty well, which is a Jedi counter attack.

At present, the US dollar index seems to be in a stalemate at the 80 level, and this week the market will usher in a new risk event. The minutes of the Federal Reserve will be released at two o'clock on Thursday, May 22nd (May 22nd), which will again attract the attention of global investors. The Discussion on the reduction of QE and the prospect of raising interest rates will become the focus of the market.

< /p >

In addition, the Bank of England and the RBA will publish their minutes. The Bank of Japan will announce monetary policy decisions. The four central bank events are undoubtedly the top priority of the US Federal Reserve. Investors will focus on information about the withdrawal of QE and the prospect of raising interest rates. P

< /p >

< p > < strong > < a > href= > //www.sjfzxm.com/news/index_cj.asp > > fed > /a > minutes or discussing the prospect of raising interest rates < /strong > /p >

< p > the Federal Reserve will announce the minutes of the April meeting on Thursday morning at 02:00 on Beijing time. In April, the Fed will not make any major monetary policy changes. Compared with the resolution itself, the minutes are likely to show more attention. At the moment, the Fed's April monetary policy summary, which will be released this week, may reveal more information than the resolution.

< /p >

The P meeting was held in April 30th, when the Federal Reserve reduced its monthly purchase debt from 55 billion US dollars to US $45 billion.

The Fed also insisted on its assessment that the economy still needs interest rates to remain at near zero levels for a period of time until the end of the asset purchase plan by the end of the year.

< a href= "//www.sjfzxm.com/news/index_cj.asp" > US economy < /a > has hardly gained growth in the first quarter, but has since accelerated.

< /p >

Less than a few hours before the two day meeting of the Federal Open Market Committee in April 29th, the P held a meeting to discuss the medium-term monetary policy, suggesting that the Fed's exit strategy may soon be adjusted.

At the meeting, it is possible to discuss the strategy of withdrawing from the easing policy in the future. It may also involve in raising interest rates, so investors will pay special attention to the minutes of the meeting.

< /p >

In the past two weeks, many officials of the Federal Reserve Chairman Yellen and other officials have made speeches on different occasions. In order to stabilize the market sentiment, Yellen still chooses Tai Chi. On the one hand, he thinks that employment and P usually remain room for improvement. At the moment, it is still necessary to maintain a certain degree of easing policy, but on the other hand, he is optimistic about the future economic prospects.

By contrast, the speech of the local Fed officials has a more guiding role.

< /p >

< p > therefore, it is expected that in the minutes of this meeting, the Federal Reserve is likely to present the latest ideas on the technical details of exit strategies.

< /p >

Less than P. In April this year, the Federal Reserve had reduced the size of the monthly purchase debt to US $45 billion on schedule, and kept the federal funds rate unchanged.

The Fed reiterates that there is no pre-set process for asset purchases, and it will still depend on the prospects and the assessment of the pros and cons of purchasing assets. Even if employment and inflation are close to the target level, it is likely to maintain the policy of "a href=" //www.sjfzxm.com/news/ index_cj.asp "low interest rate < /a" for a long period of time, the economy will expand moderately, the employment market will gradually improve, and the risk of the prospect will be roughly balanced.

< /p >

Yellen, chairman of the Federal Reserve, released six months' speech at the first press conference, but soon realized that it was very immature. Since then, the word has not been mentioned. Instead, efforts have been made to suppress interest rate expectations. P

< /p >

In the recent speech, Yellen has maintained a position that the interest rate will not be raised soon, and the bond market seems to have accepted the signal, and the US bond yields continue to decline. P

She said at the annual meeting of the national small business week of the American Chamber of Commerce last Thursday that the Federal Reserve is trying to make financial market more adaptable, but there are still many things to do for the United States to get a healthy economy.

< /p >

Yellen P said in May 8th that the Fed is not in a hurry to scale the scale of its balance sheet in the East. But if we want to reduce it to pre crisis levels, it will take 5-8 years. The scale of the Federal Reserve's balance sheet has expanded from about $800 billion in 2007 to the current US $4 trillion and 500 billion.

< /p >

< p > < strong > focus on the Bank of England and the RBA minutes < /strong > /p >

< p > Beijing time 16:30 on Wednesday, the Bank of England will announce the 7-8 May monetary policy committee meeting minutes.

Until recently, expectations have also focused on the fact that the Bank of England will be the main central bank to tighten its policy.

< /p >

< p > Britain has maintained its benchmark interest rate at a record low of 0.5% since 2009, so as to support the economy in the face of the global financial crisis.

Carney, the governor of the Bank of England, stressed last week that the central bank is not eager to raise interest rates despite the rapid economic recovery and the risk of a bubble rising in the housing market.

< /p >

< p > the Bank of England announced at its meeting in May 8th that it kept the benchmark official bank interest rate unchanged at a record low of 0.5%. The market had already expected that the conference would not adjust interest rates. Meanwhile, the Bank of England maintained the total amount of quantitative easing (QE) unchanged at 375 billion pounds.

< /p >

In addition, Beijing time on Tuesday 09:30, the RBA will announce the summary of the May policy meeting.

The RBA announced in May 6th that the benchmark interest rate remained unchanged at 2.50%, consistent with market consensus expectations.

The RBA has maintained its cash interest rate for eighth consecutive months at a record low of 2.5%. The bank has cut interest rates by 225 basis points since the end of 2011.

< /p >

< p > the Committee believes that the current monetary policy can promote sustained demand growth and inflation results are in line with the objectives.

According to the current signs, the most prudent approach may be to maintain interest rate stability over a period of time.

Australia's labor market data in April showed strong growth, and employment growth exceeded expectations, while unemployment remained at a low level recently.

< /p >

< p > of course, besides the many bright spots at the central bank level, the situation in Ukraine will enter the most crucial week this week.

On Sunday (May 25th), Ukraine will soon be elected, and the situation will continue to heat up.

Although the outcome of the resolution will not affect the market this week, whether the relevant geopolitical conflicts will escalate before the election may still trigger the risk aversion of the market.

< /p >