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the building of the Federal Reserve in Washington. September 16, 2015. the US Federal Reserve held on Wednesday unchanged its interest rate and pointed to still plans two hikes this year, but a path of slower growth for 2016 and 2017 caused a drop in expectations the central bank far they could reach rates. REUTERS / Kevin Lamarque (reuters_tickers)
By Jason Lange and Howard Schneider
WASHINGTON (Reuters) – Federal reserve US maintained Wednesday unchanged its interest rate and pointed to still plans two hikes this year, but a path of slower growth for 2016 and 2017 caused a drop in expectations the central bank to where they could get types.
in addition, forecasts of rate hikes this year were even less categorical than before. Forecasts of six of the 17 Fed officials were only rise this year, compared with one provision in that direction three months ago.
“There is considerable uncertainty about where they are heading the rates in the long term, “said the president of the Fed, Janet Yellen, in a press conference after announcing the rate decision.
the central US bank lowered its economic growth forecast for 2016 to 2 percent from 2.2 percent, and 2017 to 2 percent from 2.1 percent.
also cut its long-term vision of where it is appropriate is the rate of federal funds by a quarter point to 3 percent, and indicated that its policy of monetary tightening would be less aggressive after the end of the year.
Yellen gave no sign of when they might raise rates, but projections leave the doors open to a rise next month.
“Although the recent data of the labor market in general has been disappointing, it is important not to overreact to one or two monthly readings” said the president of the Fed, adding he expects a strengthening of employment.
Those responsible for monetary policy have been concerned about possible job weakness in the US and the financial turmoil if Britain vote next week in favor of abandoning the European Union.
Yellen acknowledged that the “Brexit” was one of the factors in the rate decision on Wednesday and that if the UK decides to stay or leave the European Union will have “economic and financial consequences for global conditions in financial markets.”
the markets have ruled out a rate hike after the Fed statement and future of the contracts interest rate on short-term They rose. Stocks on Wall Street finished lower.
Even the toughest of the Fed stopped pushing for a rate hike at the meeting on Wednesday, analysts said.
“The Fed is all cautious that can be without actually cutting rates. Even (the president of the Kansas Fed) Esther George withdrew his dissent. the pace of rate is lower, which is a big change to caution, “he said Brian Jacobsen, chief strategist at Wells Fargo Fund Management.
(Editing by Andre Grenon and Gabriel Burin)
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