Sunday, August 28, 2016

Yellen reopens in Jackson Hole the door to higher interest rates in the US – Yahoo Finance Spain

Washington, Aug 26 (EFE) .- The debate over a possible rise in US interest rates before year-end returns to take force behind the words today the president of the Federal Reserve (Fed), Janet Yellen, at the Jackson Hole conference where he said that the argument for monetary tightening has been strengthened “in recent months”.

“the light of continued strong labor market performance and our prospects for economic activity and inflation, I think the argument for a rise in interest rates has strengthened in recent months, “Yellen said in his awaited speech at the meeting of bankers central Jackson Hole (Wyoming).

This is the first public appearance of the president of the Fed after the summer recess and is a new sign that the central bank put back on the table adjustment money at its next meeting in September.

interest rates are currently between 0.25% and 0.50%, after rising last December, the first in nearly a decade.

after announcing up to four possible rate hikes in 2016, the gloomy international outlook and concerns about the domestic economy after several weak indicators in the US forced the postponement of monetary tightening.

” although economic growth has not been rapid, has been sufficient to generate an improvement in the labor market, “Yellen said.

for the future, the president of the Fed expects” moderate growth of gross domestic product real, further strengthening and inflation will rise to 2% in the coming years. “

body will have three monetary policy meetings before the end of the year, the closest 20 and Sept. 21.

However, markets point to the last, in December, as the most likely explanation for the decision.

Before the words of Yellen, was unveiled the second estimate of GDP in the second quarter in the US, which stood at an unconvincing annual rate of increase of 1.1%.

the change in tone is thus confirmed by the central bank, aimed at recent weeks by heavyweights of the Fed as the president of the Reserve bank of New York, William Dudley, and vice president of the bank, Stanley Fischer.

Fischer has said that the US economy is “near our objectives “of full employment and inflation of 2% a year.

Dudley today predicted” some acceleration “in the outlook for US economic growth in the second half of the year, so he said “possible” a rise in interest rates at the September meeting.

In addition, the president of the Federal Reserve Bank of Kansas City and host of the conference section in this resort, Esther George, argued that “it is time to move interest rates” in the US, but qualified before the start of the Jackson Hole conference that should be done gradually.

a meeting of Jackson Hole have not come this time the heads of the European Central Bank (ECB), Mario Draghi, nor the governor of the Bank of England, Mark Carney, who face the challenge of managing monetary policy in Europe following the decision UK to leave the European bloc.

Yes involving the president of the Bank of Japan, Haruhiko Kuroda, and the governor of the Bank of Mexico, Agustin Carstens, who will give an international view of the economic outlook and financial

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