December Interest Rate Increase Still Up in Air

Doesn’t Matter in Long Term – Investment Expert A strong bank earnings report today brought different responses from top officials of the United States Federal Reserve in regards to a long-awaited interest rate increase. Fed Chair Janet Yellen told a meeting of the Boston Fed that allowing inflation to run hot in a “high-pressure economy” is under consideration, a signal that market observers are interpreting as another possible stall on a rate hike. Just a few hours earlier in the day, Boston Fed President Eric Rosengren told CNBC that interest rates should rise in an environment of almost full employment (approximately 5%) and inflation near the Fed target of 2 percent (1.7%). The mixed signals reflect the mood of the Federal Open Market Committee which declined a rate increase last month, with three committee members dissenting. Yellen said cutting rates in a low-interest world isn’t enough and that a broader approach is needed to mitigate the effects of financial...

from GoldBroker.com https://www.goldbroker.com/news/december-interest-rate-increase-still-up-in-air-1021