The Fed might decide to offer no hints of a forthcoming rate hike to remain entirely neutral at a sensitive political moment.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Sohn and other economists say they still think December is when the Fed will resume the rate increases it began late last year after having left its benchmark rate at a record low near zero for seven years.When the Fed finally raised rates modestly in December last year, most economists and the central bank itself foresaw multiple rate increases in 2016 .By "high pressure," Yellen meant an unemployment rate below a level associated with a healthy economy and an inflation rate above the Fed's 2 percent target.Her comments were taken to mean the Fed was in no hurry to raise rates and were viewed as a further signal that Yellen was willing to delay the next hike until December – even though the Fed's decision to leave rates unchanged in September drew an unusually high three dissenting votes.
FOLLOW THIS ARTICLE