Economy

'Many' Fed members favor December rate hike: minutes

'Many' Fed members favor December rate hike: minutes”

Federal Reserve policymakers had a prolonged debate about the prospects of a pickup in inflation and slowing the path of future interest rate rises if it did not, according to the minutes of the USA central bank's last policy meeting on September 19-20 which was released on Wednesday.

Observers widely expect that if the Fed chooses to adopt a third rate hike in 2017, it will do so at its final meeting of the year in December. That view gained further credence in the wake of strong US economic data and Fed officials' comments.

The continuing disagreements among members of the Federal Reserve could leave investors and market watchers guessing about the path of U.S. monetary policy in the waning months of the year. Some see another rate hike as likely.

Economists have been baffled by the circumstances and Fed members have disagreed since 2016 on the near-term threat that prices will rise and that the economy will overheat.

"Low inflation, in itself, is not a problem in an economy that is growing and operating at full employment", George said.

"A few of these participants thought that no further increases in the federal funds rate were called for in the near term", the minutes said.

Fed Chair Janet Yellen has repeatedly acknowledged since the meeting that there is rising uncertainty on the path of inflation, which has been retreating from the Fed's 2 percent target rate over the past few months.

The Fed has its next meeting October 31-Nov.

Raising rates an "unduly slow pace" could cause price pressures to spike and encourage risk-taking by investors, they argued, and delaying too long could force the Fed in the future to jack up rates suddenly, harming the economy. Another group suggested that no further rate increases were called for in the near term.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1 basis point to 2.83 percent, the yield on the 15-year note also slid 1 basis point to 3.11 percent and the yield on short-term 2-year traded flat at 1.95 percent by 03:05GMT. "Many participants expressed concern that the low inflation readings this year might reflect not only transitory factors, but also the influence of developments that could prove more persistent", the minutes read.

"At the moment, the minutes say several members say the outlook is uncertain and another rate hike this year will depend importantly on whether inflation shows signs of strengthening", Rupkey said.



Like this

loading...
loading...

Latest


12 October 2017
Balyasny Asset Management LLC Acquires 51967 Shares of Anadarko Petroleum Corporation (APC)
Moreover, Acadian Asset Limited Liability Company has 0.01% invested in Anadarko Petroleum Corporation (NYSE:APC). MUFG Securities Americas Inc maintained the shares of APC in report on Thursday, September 21 with "Buy" rating.

12 October 2017
Boy Scouts go on new adventure, will admit girls to programs
Many scouts have moved on to become Eagle Scouts and in turn become captains of industry, astronauts and even president. The Boy Scouts' board unanimously approved the decision to allow girls into the Cub Scouts program starting next year.

12 October 2017
The leader of the national team of Chile completed an global career
But less than 24 hours later, Vidal was back on Twitter pledging allegiance to his country as long as he's wanted. But the 30-year-old later took to Twitter to clear up the confusion over his worldwide future.

12 October 2017
Analyst's Rankings to Lookout: Whiting Petroleum Corporation (WLL), Qorvo, Inc. (QRVO)
Chicago Equity Partners LLC acquired a new position in Whiting Petroleum Corporation in the 2nd quarter valued at about $102,000. Traders are a little more bullish on shares of the company of late if you pay attention to the change in short interest.

12 October 2017
Man Utd vs Liverpool is just another game, nothing to prove - Mourinho
He has now got one, but has also seen Belgium coach Roberto Martinez suggest that he could be used against Cyprus on Tuesday. The United star tweeted while away on worldwide duty: "Another good day at @movetocure #Rehab".

12 October 2017
American dream of World Cup glory must be reimagined after 2018 failure
But in terms of managing a national team on any level, and navigating global competitions, Vermes doesn't have that experience. Italy won the 2006 World Cup in Germany, but four years later, in South Africa, finished last in Group F.

12 October 2017
Analyst Commentary On Fastenal Company (FAST), Emergent BioSolutions Inc. (EBS)
Fastenal Company (NASDAQ: FAST ) is struggling to gain traction with investors, as evidenced by its 4.24 million shares volume. The hedge funds in our partner's database now own: 231.14 million shares, up from 229.74 million shares in 2017Q1.

12 October 2017
Federal Bureau of Investigation puts out public alert for help identifying a child predator
The case is being investigated as part of the FBI's Operation Rescue Me and Endangered Child Alert Program initiatives. Investigators said the woman is likely between the ages of 25 and 35.

12 October 2017
Pilgrim's Pride Corporation (NASDAQ:PPC) Experiences Light Trading Volume
Currently, 409.24 million total shares are owned by the public and among those 358.79 million shares have been available to trade. ValuEngine raised Pilgrim's Pride Corporation from a "buy" rating to a "strong-buy" rating in a report on Friday, September 1st.

12 October 2017
Channel Ten Dumps The Simpsons After 25 Year Run
American broadcasting company CBS has gained credit approval to take over at Ten, but the agreement has not yet been finalised. A spokesperson for Ten wouldn't comment on the fallout but said: " Fox content is not playing on Network Ten at this stage".