Quantitative easing U.S. economy, the scale of change has improved

According to minutes of the meeting released the same day, Federal Reserve policy makers believe that the recent U.S. economy continues to moderate growth, manufacturing, consumer credit and labor markets have improved, the market's confidence in the U.S. economic recovery has been enhanced, these positive signs with the Government's The new fiscal policy to stimulate the economy as a whole to support the U.S. economic recovery in 2011.

 However, the Fed also warned that the U.S. economy still faces some downside risks, including the real estate market is still in the doldrums, the price may still be lower, the unemployment rate will remain at a high level and so on. In addition, some state and local governments facing budget pressures, the debt crisis worsened in Europe may spillover U.S. financial and economic impact.

 Recently, the Federal Reserve started the second round of quantitative easing measures, attempts to U.S. Treasury yields stay low to stimulate economic growth. However, the recent U.S. bond yields rise. Some analysts said that even if the U.S. economy show signs of strength gradually, while inflation expectations and bond yields rising, the Fed will not change his mind. Nomura believes that if U.S. economic growth continued to accelerate, the Fed may slow the rate of bond purchases, but will not cut 600 billion U.S. dollars of the quantitative easing scale.

 On Friday, Fed Chairman Ben Bernanke will be in the Senate Budget Committee testimony on the economic outlook. Some market participants said that Bernanke may Reviews Recent economic data, and quantitative easing of the Fed explained. If Bernanke's speech show its concerns about rising U.S. yields, the dollar could fall sharply.