The market is expected to re-Inflation risk heating up, but the U.S. Federal Reserve has repeatedly reiterated that it has no intention of intervening in the bond market, the U.S. 10-year bond rates repeatedly upward, the global stock market for the shock. Some analysis pointed out that the U.S. Federal Reserve seems to have no bullets available, the stock market in the future to have row shock!
Recent market optimism in Europe and the United States vaccination progress of the new crown pneumonia (Chinese communist virus) vaccine, will drive the global economic recovery, the world’s major central banks, including the Federal Reserve continued to be very loose monetary policy unchanged, so that market inflation expectations continue to rise, so that the U.S. 10-year bond yields continue to rise repeatedly. But the Federal Reserve Board senior seems to be more and more popular in the market, the deterioration of inflation claims are not taken seriously, even its chairman Powell also believes that even if debt interest rates rise sharply, the bond market is still not out of control phenomenon, and even stressed that the current monetary policy stance of the Board appropriate, indicating no intention to intervene in the bond market.
The U.S. benchmark interest rate is nearly zero, the result of continued debt buying is that the balance sheet is at a historic high near, it seems that in monetary policy has been difficult to have much room for maneuvering, which is what makes people worry that under the tide of money, if the U.S. then through the $1.9 trillion bailout case, it will only make the U.S. inflationary pressure, and ultimately the Federal Reserve Board to raise interest rates slowly, may make inflation out of control; or forced to accelerate interest rate increases early, and may kill the economic The recovery momentum. Therefore, the Federal Reserve has not enough policy bullets to prevent problems before they occur, the market is highly concerned.
In fact, the Federal Reserve has tools like “yield curve control” or “distortionary operations” to intervene in the currency market, and even Treasurer Yellen has repeatedly stressed that the U.S. government has many policy tools to prevent inflation from getting out of control, but what is the actual situation?
Recent debt interest rates continue to rise, triggering intense volatility in financial markets, making people worried about the impact on the pace of global economic recovery, from Europe, Japan to New Australia and other central banks have expressed concern. Francois Villeroy de Galhau, the managing member of the European Central Bank, stressed the need to make preparations for any unreasonable rise in debt rates. Just move the mouth, but not the hand. It seems that everyone is not confident in the Fed, investors have to do a good job of risk management for the stock and bond markets continue to fluctuate significantly.
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