4 thoughts on “Is the Fed's reduction of debt purchases for good or empty?”

  1. The Fed's reduction of bond purchase means that the Fed's purchase of bonds means that the US inflation rate is relatively high. The Federal Reserve by reducing the purchase of US bonds is a measure to reduce market funds. Essence
    The Federal Reserve is an institution that formulates monetary policy in the United States. The full name is the US Federal Reserve System. Like the central bank of my country, the responsibilities are to maintain a reasonable level of regional inflation and stabilize the financial market. For example, rate hikes, and when currency tightening, a loose monetary policy, such as interest rate cuts. Regarding whether the Fed's debt shrinkage is sharp or sharp crude oil: in the short term, the empty empty, the mid -term is more profitable. The continuous recovery of the US economy is a great probability event. In the process of recovery, it still maintains a huge amount of liquidity. Not only can it not help the economic recovery, but it will exacerbate inflation offset the substantial results of the economic recovery. If you step on the brakes later, it will inevitably have a huge impact, or even Treating a severe financial crisis, the major impact of commodities encountered, causing the price of commodities to fall violently, severely damaged the enthusiasm of the transactions of the commodity, and in turn affects economic recovery.
    So delayed harvest is not as good as early. As long as the economic recovery process is not interrupted, the impact on the community in the short term can be absorbed and digested by the market. After a brief and benign adjustment, it will allow the bulk to restore crude oil and metal to the healthy upward benign benign. track. The upward slope is even lower, so that the CPI is maintained in a mild rising range of 2%, and the country and the people are beneficial to the world.
    So, overall, after the Federal Reserve announced the TAPER recently, the commodity commodity will continue to evolve the super cycle of this round of this round and maintain a longer benign fluctuations. On the whole, the gold and silver are under pressure because of the Federal Reserve's interest conference meeting, and it is also mainly due to the reactance of loosening and tightening.

  2. Some time ago, the Federal Reserve Conference has ended perfectly, and the reduction of debt purchase and interest rate hikes that investors are most concerned about the Federal Reserve Conference also have a clear answer. The results of each Fed Conference will have a significant impact on the investment community. This time, the Fed's reduction of debt purchase can be said to be a big sky. The Fed's reduction of bond purchase means that the Fed's purchase of bonds means that the US inflation rate is relatively high. The Federal Reserve by reducing the purchase of US bonds is a measure to reduce market funds. Essence

    The dollar tightening will definitely play a suppression of inflation. After all, the US dollar is getting more and more valuable, so it will definitely fall for commodity prices, especially large commodities pricing at the US dollar. The protruding PPI and CPIs in the United States play a good role in suppressing. Of course, the Fed and Powell have also repeatedly emphasized that the current inflation is only temporary. By next year, these inflation will decline significantly, and it is expected to fall to a reasonable range of 2%. If the role of reducing debt purchase is superimposed, it is expected that inflation and strong cycles will soon pass.

    The dollars to reduce the purchase of debts also means that there are less US dollars in the market, that is, the dollar will begin to strengthen, and the market on the market will be reduced, and the buyers of US debt will also be significantly reduced. If you want to find a buyer, you must increase interest rates to promote the upward of interest rate debt in the US dollar. Coupled with the expectations of interest rate hikes, I am afraid that U.S. bond interest rates will start a new round of rising cycles. This is not a good sign for assets such as commodities and gold, so you must avoid strong cycles and precious metals in investment.

    Integrate, the Fed's resolution is basically the vane of the global market. Not only investors, but even central banks of various countries are observing. In the future, with the tightening of the US dollar liquidity, the increase in asset interest rates such as the stable yield of US debt will be a profit for global insurance assets. At the same time, it will also be a huge impact for some emerging countries that depend on foreign debt to develop economy. These countries are originally borrowed on borrowing, and they are still US debt. Now the US dollar is getting less and less. The less, and the continuous appreciation of the dollar also means that as long as the debt is getting more and more expensive, these countries will definitely go bankrupt. Then their capital markets will definitely be hit hard, of course, these are all after interest rate hikes.

  3. The Fed's reduction of bond purchase means that the Fed's purchase of bonds means that the US inflation rate is relatively high. The Federal Reserve by reducing the purchase of US bonds is a measure to reduce market funds. Essence

    The Federal Reserve is an institution that formulates monetary policy in the United States. The full name is the US Federal Reserve System. Like the central bank of my country, the responsibilities are to maintain a reasonable level of inflation and stabilize the financial market. Tightening monetary policies, such as interest rate hikes, and loose monetary policies, such as interest rate cuts when currency tightening.

  4. One of the ways to put currency in the market to the market is to purchase bonds and expand the scale of bond purchase is to increase the market for the market. On the contrary, reducing the scale of bond purchase is to reduce the money to put currency to the market.
    M n When the amount of currency in the market increases, the purchasing power will be enhanced, and otherwise it will weaken and naturally affects the stock market.
    If what you want to ask is a big A, here I can only tell you simply, this is the overflow effect.

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