Amid concerns about the possible departure of the United Kingdom of the European Union and by a slowdown in hiring in the United States, the Fed President Janet Yellen remarked that It is acting cautiously in raising interest rates, hoping to improve the outlook of its economy, but also global, to realize a boost.
However, after your message, it leaves open the possibility of raising rates, but that decision could be taken even until December, while there are no signs of improvement to increase rates. Thus, September and last month of the year are seen as the most likely where it could be an increase.
Prior to the press conference, the Fed released its statement on monetary policy decision after its two-day meeting, which announced that retains its interest rate benchmark in the current range 0.25% to 0.50%, a decision that markets already took for granted
Lee also. Fed keeps interest rates and will thus ‘for a time’
on the possibility that this year one or two rate hikes are made, Yellen said the committee does not discuss how many increases perform or should perform this year or next to; however, the statement from the company said that still have referred to two rate hikes this year, but will wait until the labor market be strengthened after a recent slowdown.
In addition, while the average prognosis of the 17 members of the Federal Open Market Committee kept the expectation of two increases this year, the number of officials who sees one hike went from one to six since the March meeting.
the central banker US said the referendum on the permanence of Britain in the European Union was one of the factors that drove him to the bank to keep rates and that materialize the ‘Brexit’ that would affect the US economy.
“That’s a very important decision for the UK and Europe. It is a decision that could have implications for economic and financial global market conditions, “said
.
Investors and markets expected at this conference clues about whether the Fed would raise rates at its next meeting 26 and July 27, and those signals suggest that this increase will be difficult to occur soon. Meanwhile, Yellen reiterated that the “normalization of monetary policy does not follow a preset course” and will adjust to the changing economy, as these decisions help to achieve goals, “not established”.
He also said that the latest economic indicators in the US have been mixed and the increasing pace of improvement in the labor market has slowed considerably, but expects the labor market to continue to strengthen in the coming years.
“Although the recent labor market data has generally been disappointing, it is important not to overreact to one or two monthly readings. The committee continues to hope that the labor market will strengthen further in the coming years, “he said.
The Fed estimated that the United States will grow 2% this year from the 2.2% it had forecast in March. It also cut its forecast for 2017 to 2.1% cut it from 2.0%. It hopes that this growth is achieved in a context in which the recent economic evolution is not entirely positive: weak exports and investment, slowing job growth, a minimum acceleration in wages, and a rebound in spending consumer.
kept intact forecast the unemployment rate at 4.7% this year and 4.6% for 2017.
Provides for higher inflation in 2016, projecting a rate of 1.4% from 1.2% who he said in March. 2017 was unchanged forecast of 1.9% and is expected in 2018 reaches 2.0%, which still remain below the target of two percent.
He also noted that growth in household spending has been strengthened, and that the housing sector has continued to improve, although investment in capital goods companies has been smooth.
Yellen said that although financial markets have received pressure from the international environment, the perception of risk can change abruptly, so will continue to monitor the development of markets worldwide.
analysts expect the Fed to raise rates to least once this year, to a better outlook for the labor market in the United States and pressure on the central bank to prevent inflation exceeding the target of 2%.
Before he knew to know the ad and Yellen’s words, the weight and the Mexican Stock Exchange (BMV) they broke his streak of four falls at the beginning of operations, because the markets and investors showed less nervousness about the ‘Brexit’ -as He called the referendum in which UK decide next week whether or not to remain in the European Union -.
at 13:00 hours, the IPC stock index, which groups the 37 actions more liquid, was up 0.70% to 44,884.01 points. At the conclusion of the announcement, was at 45,028.01 units, up 1.03% advance.
No comments:
Post a Comment