We have become explorers of unknown lands50 with a fall at the global level of 74 to 57You call the State to rescue social security by relying on all decision support softwareTake for example the rain nitrogen content9 billion about 35 billion Citigroup and non5Even a mundane plant pot can become a GMOIt would not set limits to Saddam HusseinThe unions are for the time being hostileJust as a one man cannot replace an orchestraThe announcement by the Federal Reserve to maintain its interest rates to 5.25 is a victim: the dollar, which was yesterday to its lowest level in 20 days against the euro. In the late afternoon, it was worth 1,2687 dollar its highest level since October 5. The dollar also slid face the yen, falling to 118,51 against 119,06 the previous day.
The maintenance of the US Central Bank interest rates was not a surprise but operators speculated on its release. They wondered if the members of the Fed would adopt a harder tone on inflation, foreshadowing a possible hardening of its policy, or if they would maintain the market in the perspective of a status quo.
In the end, the text of the October 25 resembles very published at the previous meeting, on 20 September, at the end of which the rates had also been held. The tone has not changed. Where relaxation, yesterday, on the American bond, penalized by the evocation of a tightening of monetary policy, and a decline in the dollar, which in would have benefited.
One novelty of the release of the Fed: "wise" to note that us growth slows significantly under the effect of "the real estate market cooling". They previously evoked a simple "moderation of growth". They also provide that growth "will grow at a moderate pace."
Another small change: prices for energy are more possible inflationary factors, even if they remain. But the monetary policy Committee, they should be "moderate", also under the effect of growing. "The Fed again valid scenario of a soft landing." "Growth will permanently remain below its potential and inflation will slow down gradually," said Philippe Waechter, Director of economic studies in Natexis AM. In these conditions, it should not decrease or increase rates at its next meeting, on 12 December. Bet on a status quo sustainable, many analysts do expect now more us rates will fall before mid-2007.
Statements made by Trichet
"For the Federal Reserve, better is worth to take the risk of inflation than the objective that the risk of a recession, especially if it is associated to the construction industry, thus the creditworthiness of borrowers and banks, where the judgment of the increase in the Fed Funds rate", said Patrick Artus, Director of economic studies at Ixis CIB.
The statistics published yesterday, who handed a table contrasting the American economy have also weighed on the dollar. Worn by aircraft and equipment, orders for durable goods in September thus increased by 7.8, is much more than expected. But, excluding transport, the increase is 0.1. On the other hand, for the second straight month, sales of new homes soared in September ( 5.3 over a year), to 1.075 million units, so that a drop was expected. However, at the same time, the price of new homes fell by 9.7 over a year, which corresponds to the largest decrease since the December 1970 ( 11.2).
Finally, statements by the President of the European Central Bank (ECB), Jean-Claude Trichet, paving the way for further rate increases have contributed to the euro. "If our expectations and our baseline scenario are confirmed, it will be necessary to adjust the character accommodating monetary policy further", he said yesterday before the European Parliament.
