Mixed in 2010 will soon be over, Fed Chairman Ben Bernanke throws in the “third round of the quantitative easing” stone but in early December set off a thousand ripples. On the one hand, the United States in November non-farm employment growth of 3.9 million people, data, far less than expected. So Bernanke’s interview statement was interpreted as “probably the third time the Federal Reserve to inject liquidity into the U.S.,” the signal. On the other hand, the recent turn for the better part of the data, the United States “before the expiration of the second round of quantitative easing,” the voices continued.

The Fed plans to buy 600 billion U.S. dollars debt that the United States the second round of “quantitative easing” policy has been introduced more than a month, a quarter in advance has also been honored, but the never-ending challenge to put it into the history of the Federal Reserve One controversial decision.

Earlier this month, the Labor Department announced that the United States in November non-farm employment growth of 3.9 million people, data, far less than expected. As a result, Fed Chairman Ben Bernanke in an interview with foreign media reaction, was later interpreted as “probably the third time the Federal Reserve into the U.S. market.” However, with the last monetary policy meeting of the year approaching, the U.S. market within the “quantitative easing” of the question of voice is rising.

Carnegie Endowment for International Peace Foundation, director of international economic projects: “I ‘quantitative easing’ policy of deep suspicion, many people have the same view. Concerns focused on two points, one large-scale purchase of the Federal Reserve bonds are to achieve the desired effect of long-term interest rates; Second, even able to influence long-term interest rates, given the current level of interest rates already at historic lows, buying government bonds can stimulate demand. ”

American Enterprise Institute senior fellow Dasi Meng Rahman said, “quantitative easing” will be like the government’s economic stimulus package Obama as nothing.

Dasi Meng-Rahman: “to buy bonds in order to drive down long-term interest rates, Fed Chairman Ben Bernanke announced the purchase of bonds before the long-term interest rates did decline, but after long-term interest rates are soaring. Now it seems diametrically opposed effects, the Federal Reserve This measure contributed to the monetary market panic on the debt. So I think ‘quantitative easing’ as the economic stimulus plan will not achieve the same effect. ”

The second round of “quantitative easing” policy introduced since the critics of the United States and abroad that the long-term interest rates to keep inflation low, or the plan will lead to another wave of asset bubbles. Philip, chief economist at the International Institute of Finance, Sato believes that this embarrassing situation that, in the financial crisis, short-term interest rate is almost zero, the Fed to adjust monetary policy challenges facing the huge and unfamiliar, and buy bonds arrow seems to have “off target.”

Philip Sartori: “I think the Fed hopes to drive down by the long-term interest rates to buy bonds, which in itself is wrong. ‘Quantitative easing’ the aim should be to strengthen people’s confidence in economic recovery. If this policy can really take effect, then The results also raise long-term interest rates, rather than reduce it. so watch ‘quantitative easing’ is not an important indicator of effective financial system, there is overall improvement. ”

In such an atmosphere of suspicion cries coming monetary policy meeting last year a bit awkward. The good news is that consumer confidence and the latest trade data showed U.S. economic recovery momentum is growing.

U.S. Commerce Department data showed U.S. consumer confidence index in December rose to initial the highest level since June, exports rose 3.2% in October, the trade deficit narrowed more than expected level, in addition to 14 retail sales report will be released are expected to show Retail sales growth of 5 months straight. Such data also sparked expectations of policy introduced. But, in fact, “quantitative easing” of the pharmaceutical may need to have finished.

Some economists believe the Fed’s statement will indicate the degree of economic improvement, but still can not make the controversial second round of the quantitative easing policy (QE2) withdrew. Research Department, International Monetary Fund Deputy Director: “The global economy is recovering, despite the slow and delayed the recovery process, but the rapid momentum in emerging market countries, but the recovery in developed economies hard. Now the question is This recovery did not bring substantial employment growth, which is the biggest concern people at the present juncture. People need to be more robust growth, especially in developed economies. ”

The problem is that the Fed plans to buy long-term debt U.S. dollar will weaken further and looked, and the dollar depreciation will cause inflation. Globally, the Dadush that emerging economies face a lot of hot money inflows, the problem has appeared, and ultimately may result in devastating economic hard landing.

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