Wall Street analysts generally believe the Fed will launch a new round of currency specific quantitative easing policy, referred to as the “QE2”, that is, in the next few months, several hundred billion dollars to buy Treasury plan.

“Quantitative easing”, the popular saying is “printing money.” It is predicted that the first round of the financial crisis than the quantitative easing policy, the Fed may not be all of a sudden, “generous” nearly 2 trillion dollars to buy bonds, they will gradually adjusted according to the economic recovery of monetary policy.

Guess the new plan by the impact of the Federal Reserve, the weakening U.S. dollar last week, has not rebounded to 78.5 times above the U.S. dollar index shows strong will of the recent steady.

In addition, the market also restart the quantitative easing policy concern investors will lose confidence in the U.S. economy even more, because it reflected the Fed is more worried than we think the U.S. economy. Last week the Dow Jones and S & P stock index has declined.

Many economists believe that the current high unemployment and low inflation in the United States under pressure, in addition to quantitative easing has no other choice, this measure will help promote the growth of the weak economic recovery, and mortgage rates remain at relatively low. Nonetheless, many analysts believe that these measures can not necessarily be effective.

“As a result of quantitative easing in 2009, early spring, interest rates are already low; the other results, exceeds the Reserve Bank has reached about 1 trillion, banks have excess liquidity. The problem is, provide more money circulation, so that lower interest rates will stimulate the economy? I’m not sure, I do not think it has so much economic influence. “Bank of America chief economist Mickey Levy told the” First Financial Daily “reporter.

The Federal Reserve is a former senior inspector told reporters Lu Jing, economic reports were mixed in the past few months, the economy seems to be very strong earnings, but investors are worried about these figures is due to various government stimulus plan to promote “artificial” effect . The Fed’s easy monetary policy was effective, but rarely results in recent years.

“In the past monetary policy has been to keep interest rates at very low levels, but the economy is still nobody. Because the bank took the money do not invest, even if the government spent so much money to stimulate the economy, but both the individual and corporate bank loans are very careful, very slow changes in the money weekly. So the government is not only to vote the money, how to make money to operate it, is another policy issue. Bernanke has called for investment bank loans to SMEs, because SMEs are the economic growth to reduce the active force or unemployed. “Lu Jing said. She also believed that liberal economic policy, how to make it truly be effective, the next steps is the key.

In addition, economists believe that, compared to announce more of the quantitative easing policy, maintaining the status quo may be a better choice, because the Fed has no hands, “ace.” Blackstone Group Vice Chairman Byron Wien, told reporters that he had predicted the Fed will raise interest rates this year, “However, this did not happen.”

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