The Federal Reserve Loosed Monetary Policy And Led The Dow Jones Index To A New High Of Two Years.

The Federal Open Market Committee of the Federal Reserve's monetary policy making body convened a monetary policy decision meeting in from November 2nd to 3rd.

A statement from the conference said the Federal Reserve would gradually implement the plan in the following months. It is expected to buy US $75 billion in US Treasury bonds every month.

In addition, the Federal Reserve is expected to buy about $35 billion a month to replace the mortgage loans that will gradually become mature on the basis of the decision made in August, which will enable the total purchases of treasury bonds to reach 850 billion -9000 billion in the next 8 months.

According to the Fed statement, the pace of improvement in production and employment in the United States is still slow. Under the high unemployment rate and weak income growth, the consumption intention of the American people has been mentioned, but it has also been suppressed.

The Fed also announced that the federal funds rate would remain unchanged at zero to 0.25%.

In response to the financial crisis and economic recession, the Fed lowered its federal funds interest rate to its lowest level in December 2008 and has remained at this level.

Under the good influence, in November 3rd, the US shares rose slightly, and the Dow reached a new high of two years.

At the close, the Dow Jones industrial average rose 26.41 points to 11215.13 points, or 0.24% since 08 September.

The Dow has risen for 4 consecutive trading days.

The Nasdaq composite index rose 6.75 points, closing at 2540.27 points, or 0.27%. The standard & Poor's 500 index rose 4.39 points, or 1197.96 points, or 0.37%.

Financial stocks and technology stocks rose, AIG rose 3.44%, Morgan Stanley rose more than 3%, Citigroup edged up 0.48%, Amazon rose 2.34%, CISCO rose 2.33%, HP rose 2.1%.

The Federal Reserve estimates that the 600 billion quantitative easing measures will almost equal 75 basis points.

Affected by this, the US dollar fell slightly, and Michael Woolfolk, an analyst at BNY Mellon, New York, said that the Fed's resumption of quantitative easing could reduce the unemployment rate still "doubtful", but this would obviously suppress the US dollar.

NYMEX crude oil futures closed up 0.94% on Wednesday, at 84.69 U.S. dollars / barrel.

Jack Scoville, an analyst at Price Group, said: "I think the commodity market's response to the Fed's resumption of quantitative easing will be quite positive, mainly because of weaker dollar and other market reaction, but it seems that people have started buying commodities and selling dollars.

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For the Chinese stock market, the US move has a positive effect.

Liu Dezhong, chief economist and research institute director of Minmetals securities, said in an interview with the securities times network that the two round of the plan to push the economy out of the current weak zone of low inflation and low growth will lead to further weakening of the US dollar, thereby stimulating the commodity futures market to go up again.

For China, the further flooding of US dollar liquidity will bring about a sustained appreciation of the RMB, which will also bring import inflation, push capital into the stock market, seek investment opportunities against inflation and value preservation, push up the valuation center of RMB assets and move the stock market better.