The Boston Fed President said the Fed may be forced to raise interest rates faster isobuster

The Boston Fed President said the Fed may be forced to raise interest rates faster U.S. stock market center: exclusive national industry sector stocks, premarket after hours, ETF, real-time quotes Sina warrants stocks news Beijing time on the evening of 14, Boston Fed President Eric – Rosengren (Eric Rosengren) said on Friday that the Fed may need to be faster than currently expected pace a more rapid increase in interest rates. The Fed’s latest economy is expected to be slightly higher than 1% before the end of next year, 2018 close to 2%. Rosengren said in an interview with CNBC, said: I personally think that if the unemployment rate fell to the extent of my expectations, then we may have to be faster than the economic expected to increase the pace of summary." Mr Rosengren said he expects unemployment to fall to around 4.5% next year. He expressed concern that the situation is unsustainable and could force the fed to raise interest rates much faster than he thinks he needs. The Federal Reserve governor of Boston says some new studies have raised doubts that disgruntled workers will continue to return to the labor force to keep unemployment down. Traders generally expect the fed to raise interest rates at the November 1-2 meeting of the possibility is very low, because the date of the meeting is 6 days before the U.S. presidential election day. At the same time, investors believe that the possibility of the fed to raise interest rates more than 60% at the end of December, the Federal Reserve Chairman Janet – Yellen (Janet Yellen) will be held in the press conference after the meeting. Rosengren said: "for me that (December hike) seems quite appropriate. We tend to take action at a policy meeting with the Fed’s press conference." Rosengren is one of the Fed’s September meeting on the three dissidents, he voted in September to raise interest rates 1/4 basis points. Rosengren said in an interview, he predicted that the Fed’s interest rate hike faster than market expectations. He said he was concerned that the 10 – year treasury and commercial real estate capitalization ratio was at a record low. The yield on the 10 – year bond is roughly what we believe is the current level of inflation. This level is quite low, "he said. Rosengren said that the 10 year bond yields so low, indicating that investors lack confidence in the ability of the fed to overcome weak economic growth. Therefore, long-term maintenance, people began to seek higher returns in the low interest rate policy, yields are so low, and in some aspects of the U.S. economy — for example, we see the commercial real estate assets — prices rising rapidly the fact that the market has become a source of concern." He said. Rosengren suggested that if people worry that low interest rates may pose a potential risk of financial stability, the Fed can use the balance sheet to make the yield curve steeper. (Zhang Jun) responsible editor: Zhangjun SF065相关的主题文章: