Thursday, 22. September 2016
The US Central Bank has not turned a screw, as expected, at the Interest rate. But what not is, can yet be. Fed chair Yellen signaled political independence. Despite the presidential election, an interest rate move in November is possible.
The US Central Bank’s first interest rate has been reluctant to increase this year as expected. In an internally controversial decision to leave the key rate to supply the banks with cash for the time being in a range of 0.25 to 0.5 percent.
signalled At the same time, Fed chair Janet Yellen, however, that an interest is step this year is still possible: “If no new risks are added and everything remains on course,” she added. Yellen emphasized that even a few days before the election in November, the forthcoming Fed Meeting could bring a decision. The deliberations of the Central Bank would not be affected by political Considerations, highlighted.
Overall, the Fed remains on your policy, to make the interest rate decision from the data and the feedback from the US economy. In principle, the Central Bank is a history of the American economy satisfied. In the text accompanying the interest rate decision, you signed a relatively positive picture.
The labour market has improved continuously, and the economy put on. Nevertheless, the Fed had decided “for the time being,” against an increase. Previously, they wanted to see progress on the path to full employment and stable prices. The first goal was practically achieved. However, the rate of inflation, the Fed is still a good chunk of the target inflation rate of two percent. This was taken at the interest rate decision into account, – said Yellen. The Central Bank is more anxious to reach its inflation target.
the monetary authorities have violently struggled with the decision, shows the result of the vote: Three were for an immediate increase, but were outvoted by seven colleagues. Economists and traders had expected in the run-up to the decision, also because the image of the robust US economy, had last get slight cracks. In addition, the fact that the Central Bank is out with its interest rate decision in the US election, observers to think had given.
Republican presidential candidate Donald Trump had accused Yellen recently to keep the base rate at the direction of the democratic President Barack Obama artificially low. The Fed Chief did not want to comment on the US election. The next US President is on 8. November selected. The US Central Bank meets on may 2. and 3. November.
Overall, a growing number of those who expect the interest rate move in December – when the US presidential election is over. But not all are convinced. According to the experts of HSBC, the US economy will not develop in this year, the momentum to convince a majority of the Central bankers on the FOMC from raising the key interest rates. You expect a normalization of monetary policy until the middle of next year.
The Fed had to turn their interest in December of last year, ushered. Contrary to expectations, it remained as yet in this single interest rate. The U.S. stock markets, the prospect of a prolonged supply came with cheap money: The prices increased significantly.