Reserve bank tipped to cut rates during election
The Federal Reserve also hinted the interest rate may soon increase by at least 20 basis points.
“The Fed has begun to expect a rate hike after we announced it was raising our short-term rate,” said John Williams, deputy economist at IHS Global Insight. “The Fed also believes that we can achieve two to three rate increases in 2017 and, as this increases, the risks to financial markets increase.”
“There are clearly a lot of signs that the Fed will start to raise rates,” Williams added.
There had been uncertainty surrounding its next move in a row with Fed officials h카지노 게임aving given a mixed assessment on how low rates are likely to remain.
The central bank’s rate-setting committee on Friday voted 6-0 that short-term rates needed to be elevated to a range of 0.25 percent to 1.0 percent – still far less than market interest rates – in order to keep markets from overheating.
A further move by the FOMC would force the central bank to cut rates even higher.
But in his remarks, Williams warned t샌즈 카지노he Fed’s move did not mean rates were ready to be raised anytime soon.
“There is still a long way to go for economic growth to return to full capaci공주출장안마 공주출장마사지ty and job creation to take off,” he said. “But I think it’s time to give the markets something to watch.”
The Fed’s first rate meeting is scheduled to be held on June 18 in Washington.