Wednesday, June 15, 2016

The Fed sees that for some time rate is below the estimate in the long term – Expansion MX

The Federal Reserve US (Fed) announced Wednesday that will keep the interest rate in the range of 0.25 to 0.50% and said it is likely to remain for some time, below levels expected to prevail in the long run.

“the real path of the federal funds rate will depend on the economic outlook as incoming economic data, “according to according to the announcement of monetary policy of the Federal Open Market Committee (FOMC).

” the ‘brexit’ decision to UK leaving or not the European Union is something we discussed and I think that was one of the factors taken into account for the decision of this day is an important decision for Europe and the UK, is a decision that can have consequences for the economic conditions and financial and the world, of course it could have implications for the US economic outlook, “he said at a press conference after the monetary policy decision.

Although some members of the Committee are up to two increases in the benchmark rate this year. Six of the 17 FOMC members see a rise in the exchange nine estimated two supers and only two are more than two increments, according to the document on the economic outlook.

The US central bank expects inflation to remain low in the short term, partly due to earlier declines in energy prices, but 2% over the medium term after dissipate the transient effects previous declines in energy prices and import and the labor market is reinforced.

The Commission said it will closely monitor inflation indicators and global economic and financial developments, “the Fed.

The US Federal Reserve has kept the benchmark rate that range between 0.25% and 0.50% since December 2015 when the rose for the first time after keeping nearly 10 years in near-zero levels.

since then, the Fed has shown caution despite the relative economic strength of the United States, largely due to an economic slowdown and volatility in financial markets, according to Reuters.

Economists in a Reuters survey anticipate that the Fed will raise rates July or September next, because it is expected that recruitment will recover in June and no financial collapse by the so-called Brexit, according to the news agency.

Read: Pemex, Trump and ‘brexit’ push the weight

with information from Reuters

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