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Thursday 12 October 2017

P. Harker: Another rate hike this year and three in the next

Fed Philadelphia head Patrick Harker said last week he expects another increase in interest from the reserve and three next year.
This program, however, will largely depend on the performance of inflation, Harker said.
He still signed up for three interest rates next year, but again we need to see how market dynamics is developing, Harker said in an interview with CNBC.
Apparently the comments of the official representatives of the reserve are not convincing enough, as yet a little over half of the market participants expect a third increase in interest rates this year.
We can not fail to note the still low performance of inflation in the world's leading economy. It is at levels below the target of 2%, puzzling seriously the members of the Monetary Policy Committee.
And although Fed officials, in the face of Janet Yelan and Stanley Fischer, have said in the past two weeks that they expect inflation to accelerate over the coming months as a result of low unemployment, inflation has fallen since the beginning year.

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