Friday, July 10, 2015

Yellen: expect a rate hike this year – Banker

The head of the Federal Reserve reiterated that interest rate rises
 US can be expected later this year. But investors out of the market
 timely remain skeptical and assume that the federal funds rate
 grow only in 2016.

 
 

“I expect that would
 appropriate that at some point this year to take the first step towards increase
 interest rates
and thus begin normalizing monetary policy
 - Said Janet Yellen on Friday in a speech in the City
 Club in Cleveland.


 

Almost the same phrase head of the Federal Reserve has used in
 May. “If the economy continues to be improved like this I expect it
 I think it would be appropriate that at some point this year to take a preliminary step
 to raise the federal funds rate range “- so
 Ms. Yellen expressed one and a half
 a month ago.
 

For the first since 2006, raising interest rates in
 United States waiting for over 5 years already in late 2009 began
 to appear forecasts that the Fed will bear feet in a few months. And as far as
 Every time there was an excuse to not lift the foot. Almost zero
 (Range 0-0.25%) kept the federal funds rate from December 2008 .
 

“But I would stress that the direction of the economy and
 Inflation remains very uncertain … We will closely watch whether the improvement
 labor market conditions will continue. We need to be within a reasonable degree
 confident that inflation will return to 2% over the next few years, “- added Mrs.
 Yellen, leaving his door open to further delay the rate hike.


 

In this year’s increase in the federal funds rate is not very
 They believe investors out of the market timely. Full hike by 25 bp. included
 It is in the valuation of contracts maturing in February 2016. The market is valued chances for a raise in September
 less than 50%. And even at the beginning of the consensus of economists it assumed that the first hike will take place … in June 2015.


 

Krzysztof Kolany

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