Wednesday, August 17, 2016

FOMC members soon see a rate hike: minutes – Newscasts Televisa

WASHINGTON, Aug. 17, 2016.- Some voting members of the Federal Reserve is expected soon upward movement in interest rates, although there is general agreement that also requires knowing more economic data before making that decision, the minutes said the monetary policy meeting in July.

Several Fed members advocated in July to wait to have more confidence that inflation would accelerate to 2% target, while others felt that the United States it is close to getting its labor market is fully recovered, which would guarantee a rise in interest rates.

“Some (…) members anticipate that economic conditions will soon justify taking another step towards removing the expansion of monetary policy, “said the central bank of the United States in the minutes released on Wednesday.

the minutes showed that members of the panel of the Fed that sets monetary policy were generally optimistic about the economic outlook and the country’s labor market, but several authorities said that a slowdown in the future pace of hiring would be an issue that could threaten a rise in borrowing costs in the short term.

Ten officials the central bank are currently members of the Federal Open Market Committee, which sets monetary policy and seven other leaders of regional Fed banks participated in the meeting on 26 and 27 July, but they had no right to vote.

the larger group of officials, several expressed concern that low interest rates could damage financial stability.

the paper suggests that the rise in interest rates is still an open possibility in September, although the Fed will not undertake to adjust until greater consensus on prospects for growth, recruitment and inflation is achieved.

the minutes show that the Fed believed in July that European banks they were under pressure, mainly Italians, while the US financial sector managed to resist the purposes of voting in the UK to leave the European Union.

TFO

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