— This is the script of CNBC's news report for China's CCTV on March 20, Thursday.
Welcome to the CNBC Business Daily.
The US Federal Reserve could end its monetary stimulus program as soon as fall this year, and could start to raise interest rates a mere six months after that.
Federal Reserve Chair Janet Yellen made the announcement at the end of a two day FOMC meeting, and the news sent shock waves through international markets.
So what can we expect from the coming policy changes? Here's what the analysts had to say:
[Soundbyte on tape by Gina Sanchez, Chairwoman & Founder Chantico Global] The change in terms of forward guidance should not have been a surprise - I think its the timing. Personally, I think the markets will forget this sooner rather than later, this will just be a little bit of a blip. But this equity market generally is already on its last legs. It's pretty long in the tooth at this point, especially in terms of how long it's rallied and what the drivers are. We're sort of left with basic sales and that's really, really weak. So something like this could really start to pick apart the market.
[Soundbyte on tape by Jesper Bargmann, Head of Trading Markets, Singapore, Nordea] The Fed projections of interest rates for 2015 and 2016 was a big surprise. I think the spring of 2015, but that's kind of been the expectation. It's more, the path after that seems to be a bit faster than anyone expected. Having said that, it's still very accomodative. If we say that the new projections are are 2.25% by the end of 2016, that's still far away from what they call normal, which is 4%.
[Soundbyte on tape by Stephen Roach, Senior Fellow, Yale University] Quantitative easing helped deal with a crisis, but it's been hugely disappointing in fostering recovery. The sooner the Fed abandons the program, the better. There are other things that need to be done to fix the balance sheets of American consumers - like debt forgiveness and stimulating savings. You got to get consumers whole again. All that QE did was to get wealthy consumers that own stocks wealthier.
Li Sixuan, reporting from CNBC's Asian headquarters.