After the end of the Fed quantitative easing policy attention to raising interest rates


Federal Reserve (FED) at the end of an unprecedented period of asset purchases, is turning its attention to the first rate hike。  Responsible for the statement of the Federal Open Market Committee (FOMC) interest rate changed significantly wording, stressed that the US labor market turnaround。The committee abandoned the previous view that labor resources' utilization of significant deficiencies ", but rather that the situation is" gradually decrease "。  This marks the Fed's attention has witnessed tremendous shift from the third round of asset purchases (QE3) large-scale monetary stimulus, interest rates will eventually need to shift from the current level near zero increase。  Fed by 9 votes to 1 vote of an absolute advantage to support this statement。To vote against not one of "hawks", but doves – Federal Reserve Bank of Minneapolis (Minneapolis Fed) governor that La Yana – Kocherlakota (Na Lana Coe Che Keta), he hoped that in the longer term the Fed's commitment to keep interest rates low。  This statement shows that the Fed did not bother wave of market turmoil and worries about the global economy。But the statement noted that "a measure of market-based indicators of inflation expectations declined," that the Fed continues to worry about this。  The Fed continues to predict that interest rates will remain low "for quite some time", but clearly linked to the starting point of the period this month, and add a escape clause: If the economy improves faster than expected, will consider raising interest rates in advance。  The Fed, as expected, the end of the reduction process, terminate the last month of $ 15 billion asset purchase plan。  September 2012, the Federal Reserve launched a third round of quantitative easing, when the Fed pledged to buy $ 85 billion a month in long-term assets, until the emergence of a significant improvement in the job market。  Last December, the Fed began to reduce the purchase plan before the meeting on interest rates of asset purchases to $ 15 billion per month。  Translator / Liang Yan Sang (Source: FT Chinese Network)