New frontiersAchaque day sufficient sentenceWhat highly stimulating employment of engineers7 in 2008 the first half of 2009 was nightmareIt already gives the color to what will be its mandateWith Windows 7 Microsoft intend a fresh startIt is very good news for Alcatel ensures ChevreuxLife is a party desperate that wants to strangle the black handThis giant of the staging is used to exhibitSometimes to request further explanationsWhile ACE cherche to expand in the provinceThe US Federal Reserve faces a balancing exercise: initiate a shift toward an output of the device of crisis, without causing turbulence in the markets. Ben Bernanke, the pattern of the institution, said last week that the recession was over. With the exception of the rate of unemployment, economic indicators show the day after day. The passage of the Manufacturing ISM over the symbolic border of 50 points was even reported a start of expansion of activity. The Fed has therefore had to take into account these elements yesterday in his press release and announced to that "economic activity is was straightened, after a severe cold.The Committee members also speak of factors "promoting a strengthening of growth", rather than force "contributing to a gradual return to sustainable growth."If the tone is more optimistic, it is only moderately, as the press release also recalled as in August, that "economic activity could remain low for some time."
In this context, not surprisingly, interest rates have been maintained at 0. The rent money has not budged since December 2008 and the market, the first round of screws should not intervene before April-May 2010. Faithful to its communication of last month, the Central Bank has indicated that rates would remain "to exceptionally low levels for" long
The main question that haunted the minds was whether the Fed would raise the output of one or more of support programs put in place following the bankruptcy of Lehman Brothers. The members of the monetary policy Committee decided to do nothing and maintain "a smooth transition to the markets."Therefore, redemptions of debt of the agencies of mortgage refinancing to back-to-back titles to real estate loans for a total of 1,450 billion, will be at a slower pace, so that the device will end in the first quarter of 2010 and not at the end of this year. The Fed does not therefore Cree victory, even if 30-year fixed mortgage rates fell to 5.04 (against 6.5 in the fall of 2008). "Improving is fragile and this market remains under infusion," warned Christian Parisot, in Aurel-BGC, prior to the verdict of yesterday. "The Fed still buys 80 of the volumes of securities issued by the agencies Fannie Mae and Freddie Mac."Central bankers have taken into account this reality. In August, they had already decided to maintain the envelope of redemption of government bonds, but slow down the pace of operations.
Yesterday, just after the publication of the press release, 2 years rates thawing 5-point base to 0.96 in relief. The performance had previously climbed above 1. The Fed has therefore passed the test. It may be more difficult for her to approach the out of the crisis without causing a whirlpool. "Short bond market rates should enter an area of greater volatility, because the market is on the lookout for any semantic shift foreshadowing a rise of interest rates", said René Defossez, at Natixis. Short rates are most sensitive to the issues of monetary policy. The crisis was "abnormal" to transfer the short rate volatility to the longest because of interest rates lowered to the lowest.
