Friday , February 26 2021

The Fed acknowledges concerns, but still sees price rises in the US, governments and the economy



Mon, November 19, 2018 – 5:50

San Francisco

FEDERAL POLICY POLICY POLICY announced on Friday the further increase in interest rates in the future, although relatively unconcerned concerns about a possible global slowdown were triggered, in which markets heavily argued that the interest rate cycle would soon be avoided.

A wider range of market expectations and interest rates, which the Fed only defined two months ago, highlights the biggest issue facing US central bankers: how much weight is given to an increasing number of potential red flags, although economic growth in the US continues to it strengthens to reduce unemployment and create jobs? "We are now in a place where we have to be particularly dependent on data," said the new vice-president of Fed, Richard Clarid, at the CNBC interview.

"I think now the economy is today, and the Fed's projection of where it will happen to be neutral would be meaningful," he added, while defining "neutral" as a policy level somewhere between 2.5 and 3.5 percent.

Such an area means anywhere from two to six additional stages, and g. Claridus refused to say how much I would love him. He said he was optimistic about increasing US productivity, indicating that he would not see a faster economic or wage growth that would necessarily contribute to higher inflation or necessarily require a more stringent policy. But he also sounded a mild warning.

"There is some evidence of a global slowdown," Clarida said.

"This is something that will be important, because I'm thinking about the prospects of the US economy, because it affects the major parts of the economy by trade, with capital markets and the like."

In a separate interview with Fox Business, Robert Kaplan, chairman of the Dallas Federal Reserve Bank in Dallas, said he saw a slowdown in growth in Europe and China.

"This is my assessment that global growth will be somewhat larger and may flow into the United States," Kaplan said.

The Fed has raised interest rates three times this year and expects it to reach its target next month, ranging from 2.25% to 2.5%. Since September, policy makers of the Federal Republic of Germany will have to expect to increase their interest rates three times more frequently in the following year, which will be updated next month.

In the past week, betting on Fed-related contracts has suggested that even double the price may be extensible. REUTERS


Source link