For the Federal Reserve there is only one question on the upcoming meeting
It is expected that the Fed will again
pause their actions
tighten monetary policy,
because GDP forecasts very
disappointing - economy shows
slowing. Head of the regulator Janet
Yellen, however, supported the rise
Rates this year.
The US economy,
it seems, shows a very precarious
position in recent years, and because
it is expected that GDP data for the third
quarter confirm this. As a result, the Federal
Reserve will once again be forced to
keep interest rates near zero.
Fed decision will be made on Wednesday and
Preliminary reports on GDP will be released
on Thursday.
"Weak reports and
continuing economic
uncertainty in the country and abroad
It means that the Fed is now stuck in their zero rate,
whether it likes it or
no", - says Paul Mortimer-Lee, chief
economist for North America at BNP
Paribas.
Much more important is the answer
the question - will there any hints the Fed
about his actions in December
of the year. "Policy Statement will
carefully analyzed for the presence of
"Evidence" that the probability of movement
rates in mid-December"- sure
Josh Shapiro, chief US economist at
a MFR Inc. But analysts do not expect to see
many clues.
"FOMC tried to dissuade
market expectations of any express
signals about the coming changes
monetary policy, emphasizing
dependence of the solution of the statistical data.
Thus, we do not expect significant
changes in the position and policy
leadership", - said Maykl Henson,
senior economist at Bank of America Merrill Lynch.
This does not mean that the Fed
It will not raise rates in December,
it simply means that the Committee has
still undecided. In September
13 of the 17 members of the Federal Reserve supported the increase
rates before the end of the year.
The Fed will continue to
move, relying to a greater extent
on the statistical data, especially on the analysis of
October and November reports
the labor market, which will be released just before the December meeting. The regulator wants
see a strong labor market, to be
confident that inflation
go up. However, prior to the meeting
Fed released many more in December
economic reports, which can
influence the decision.
analysts MarketWatch
It predicts that GDP slowed to
2.1% in the third quarter from 3.9% in the second
quarter. Other economists call
even lower figures - they think
US GDP in III quarter
It grew by only 1.6%. Many believe that in
Third-quarter GDP would herald
slower growth in the future.
Other key points
- an index of labor costs,
which is a good indicator
wage growth - is expected to
This growth strengthened in the third quarter.
Higher income from wages
the board will give confidence that the growth
inflation is around the corner. On the other hand,
data on durable goods,
It is expected to have fallen for the second month
a row in September, and it is another sign
that global woes and strong
Dollar still prevent American
production.
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