Friday, May 27, 2016
The Fed chief Janet Yellen is optimistic that the economy continues to grow. Therefore, the Fed wants to raise interest rates might soon continue. That it might be applicable in June, is, however, questioned from various quarters.
In unusually blunt words Fed chief Janet Yellen has prepared the markets for an early rate hike. An increase was likely “in the coming months appropriate,” Yellen said in Cambridge, MA. They expect that growth and put on the situation on the labor market aufhelle.
Therefore, be gradual and cautious steps attached to the top. Yellen left open, however, whether it results in an increase in June or in July or September in the eye. Nevertheless, the remarks of the US Supreme Currency guardian are considered clear indication to investors, in time to adjust to rising interest rates.
On Wall Street, stock prices gave up their gains from temporary. The dollar to put. According to the economist Mohamed El-Erian, the Fed will probably soon make serious: “Yellen amplifies the signals for an early rate hike that have already sent their colleagues in the Federal Open Market Committee before,” tweeted the Alliance -Chefwirtschaftsberater
. According to the co-founder of the investment bank Double Line Capital, Jeffrey Gundlach, that does not mean that it will happen in June. Dealers prized the probability of an increase in June after the statements to 34 percent.
Significant increase expected
The monetary authorities have already spoken internally about a possible rate hike in June. You hold the key rate to supply the banks with cash in December in a range of 0.25 to 0.5 percent. The Fed will however be safe from an increase that the recovery has gained strength. But the economy had a weak start to the year. She put annualized expected to only 0.8 percent. But Yellen is optimistic that the worst is thus: “The economy continues to improve and the growth seems to attract.”More about
model calculations of the Fed offshoot say For the second quarter in Atlanta requires an acceleration to 2.9 percent. The Fed of New York expected 2.2 percent. The beginning of the year in view arisen from the financial turmoil and abflauender global economy fears of a recession seems gone with it. She was one of the reasons that the Fed delaying a rate hike.
rate hike by Proposed referendum on United Kingdom membership of the European Union referendum?
In the Fed, however, there is a controversy, what dangers on 23 June brings forthcoming British referendum about leaving the EU. While some central bankers fear increased market fluctuations in the environment of the vote, the Fed leading member James Bullard considers the risks to be exaggerated.
Given the risks associated with a Proposed referendum on United Kingdom membership of the European Union, some experts expect that the central bank the first monetary tightening in this year is probably not dare in June. If they should, however, wait too long, the Fed could come with the controversial decision in the hot phase of the US election campaign before the decision in the race for the White House in November: The Republican presidential candidate Donald Trump is one of the sharpest critics Yellens, the he accuses a political closeness to the outgoing democratic President Barack Obama.