US interest rates more than 25 Pb. Three more increase in 2017. – Russian Radio

In the message accompanying the fed’s decision was the announcement of the increase in the rate of price rise of money in the coming years.

Plans for lifting the foot for 3 years, to 3 percent.

the Central Bank plans a three-fold increase in interest rates by a quarter point, as in the following year, as in years 2018-2019.

the Purpose of these increases has to be back for the feet at the level of 3%, which is the level the us Central Bank considers normal.

Yellen: rate hike reflects confidence in the Fed the us economy

the interest rate Increase reflects the confidence that the Fed has on the U.S. economy, she said at a press conference after the fed meeting, its Chairman, Janet Yellen. It added that large fiscal stimulation is not necessarily required to achieve full employment.

“We have a strong labor market and dynamic economy,” said Yellen.

“More stimulation from the fiscal necessarily need to again reach full employment,” she added.

she Said some members of the Fed took into consideration in its projections of macroeconomic trump’s proposed changes in fiscal policy.

Yellen does not want to “speculate” on how the Fed will react to changes in fiscal policy. She added that it cannot predict.

Referring to the tenets of Donald trump with a campaign Yellen has estimated that tax changes can increase productivity and investment.

Yellen announced that the Fed was in contact with the environment of Donald trump after the election.

“I had No contact with the environment trump for these contacts,” she added.

In the evaluation Yellen, inflation has come closer to the long-term goal of the Fed. Yellen has said that he wants inflation rose to 2%. in order for the Fed in the appropriate amount of time.

“inflation Expectations remain well anchored”, she added.

Yellen pokreśliła confidence that the Fed for the US economy, but noted that economic growth justifies only a gradual increase in monetary policy, because there are still uncertainties of his prospects.

she Stressed that monetary policy is not pre-upatrzonym course.

she Added that changes in the “chart kropkowym” (dot-plot, median forecasts relative to the level of the legs at the end of the respective years) “very little” in relation to the previous, the September forecasts.

during the conference, Yellen said that have not yet made a decision about his future after the expiration of her 4-year tenure in the chair the Chairman of the Federal Reserve in 2018.

“I understand that there is a possibility like calling me, as is not elected for a new term of office”, she added.

Gradual increase

the Fed in the message, as it did after previous meetings, said he expects that “conditions in the economy will develop in a direction that calls for only a gradual increase in interest rates”.

Surveyed by Bloomberg economists expected this decision

the Median forecasts of FOMC members regarding the rate increase until the end of 2017. increased to 1.375%. with 1,125%. in September and involves three interest rate hike by the Fed next year.

the Median of forecasts regarding the rate hike at the end of 2018. rose to 2,125 from 1.875 percent. that means that Fed members expect three rate hikes in 2018, the same as in the September projections.

the Last increase in the rate on Federal funds was implemented in December 2015. The fed kept the rate at 0.0-0.25 percent. from December 2008. until December 2015.

economists had forecast a rise in US interest rates

Chief economist at Bank Pocztowy Monica Jacket believed that the most likely is to increase interest rates by a quarter percentage point. He adds that this decision will have no significant impact on the dollar, as financial markets, such a scenario does wyceniły.

more importantly, fed members will say after the meeting. Monica Jackets explains what investors expect that next year will occur over the ocean in two or three rate hikes. The announcement of more tightening of monetary policy will cause a sharp strengthening of the dollar, and reversing the increase in rates will lead to depreciation of that currency.

IAR, PAP, ABO, jk