International Reuters
the president of the Federal Reserve of the United States, Janet Yellen, in a conference in Washington. the case for a rise in interest rates in the United States strengthened in recent months due to the improvement in the labor market and expectations of moderate economic growth, the president of the Federal Reserve said on Friday Janet Yellen. REUTERS / Kevin Lamarque / File Photo (reuters_tickers)
By Jason Lange and Ann Saphir
JACKSON HOLE (Reuters) – the case for a rise in interest rates in the United States strengthened in recent months due to an improving labor market and expectations of economic growth moderate, president of the Federal Reserve, Janet Yellen.
said on Friday
the official did not indicate a precise moment in which the US central bank could raise rates, but his comments reinforced the view that it might happen this year.
The next meetings of monetary policy of the Fed are scheduled for September, November and December.
In an international three-day meeting between central bankers in Jackson Hole, in the state of Wyoming, Yellen said that “the US economy was approaching the targets set by the Federal Reserve, of maximum employment and price stability”.
“in light of the continued strong performance of the labor market and our outlook for economic activity and inflation, I think that in recent months has strengthened the argument for an increase in the rate of federal funds, “Yellen said, adding that the Fed still believes that price increases should be “gradual”.
the Fed raised rates in December, the first increase in nearly a decade, but refrained from raising them again this year due to the slowdown in global growth, volatility of financial markets and some inflation data generally modest in the United States.
statements Yellen, not pose a clear roadmap on what does the Fed to raise rates probably will not convince some investors that monetary tightening is imminent.
There are analysts who see the Fed officials sharply divided over the possibility of raising rates soon, or, on the other hand, take a more cautious approach.
“Just left the door open for a hike sooner rather than later, “said Subadra Rajappa, strategist at interest rates at Societe Generale in Washington.
the futures prices of federal funds rate showed that investors see the same probability that the Fed will hold or raise rates in December, generally unchanged from the situation before he spoke Yellen.
the probability of a rise in the meetings in September or November appears as much less.
nEW sCHEMES AND OTHER OPTIONS
Yellen made the remarks Friday at a Fed conference on designing new schemes of monetary policy, at a time when the central bankers are eager to find new ways to stimulate the economy even after cutting rates to near zero percent and flooding banks with money.
the head of the agency devoted most of his speech to outline how it could deal the Fed with future recessions, now that many economists and central bank believe that population aging and other factors appear to be slowing US economic growth in the long term.
As an expansion more slow means that US interest rates in the future probably will need to be lower on average, some analysts have suggested that the Fed will have less room to fight future recessions, because there will be less room to reduce them.
the argument is “exaggerated” Yellen said, because the Fed can use bond purchases and future orientation to ease conditions. You could also explore other options, such as expanding the range of assets that can buy, raise the inflation target or target a level of nominal GDP, said
(Reporting by Jason Lange and Ann Saphir;. Additional reporting Lindsay Dunsmuir in Washington)
reuters_tickers
Reuters international
No comments:
Post a Comment