LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Ottawa International Crafts & Book Expo 2023: An assembly of literary brilliance

  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa

  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa

  • How Canadians can access online casinos through mobile phones

  • Comment gérer un retard de vol ?

Business
Home›Business›U.S. Rate Hike More Likely, Says Yellen

U.S. Rate Hike More Likely, Says Yellen

By admin
August 28, 2016
1838
0
Share:

WASHINGTON—Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a solid job market and an improved outlook for the U.S. economy and inflation. But she stopped short of offering any timetable.

Yellen sketched a generally upbeat assessment of the economy in a speech to an annual conference of central bankers in Jackson Hole, Wyoming. She pointed to steady gains in employment and strength in consumer spending.

She also noted that while inflation is still running below the Fed’s 2 per cent target, it is being depressed mainly by temporary factors.

“In light of the continued solid performance of the labour market and our outlook for economic activity and inflation,” Yellen said, “I believe the case for an increase (in the Fed’s benchmark borrowing rate) has strengthened in recent months.”

Still Yellen declined to hint at whether the Fed might raise rates at its next policy meeting, Sept, 20-21, or at its subsequent meetings in early November and mid-December. Instead, she stressed, as she frequently has, that the Fed’s rate decisions will depend on whether the freshest economic data continues to confirm its outlook.

“As ever,” she said, “the economic outlook is uncertain, and so monetary policy is not on a preset course.”

Federal Reserve Chair Janet Yellen offered a generally upbeat assessment of the economy Friday in a speech to a conference of central bankers in Jackson Hole, Wyoming.
Federal Reserve Chair Janet Yellen offered a generally upbeat assessment of the economy Friday in a speech to a conference of central bankers in Jackson Hole, Wyoming.  (Carlos Barria / REUTERS FILE PHOTO)  

Economists took her remarks to mean that while a rate hike remains possible at the Fed’s September meeting, it isn’t necessarily likely.

“We think most officials will want to see more concrete evidence of a rebound in GDP growth and a rise in inflation towards the 2 per cent target with a December move still appearing the most likely outcome,” said Andrew Hunter, an economist with Capital Economics.

Hunter pointed to a government report Friday that the economy, as measured by the gross domestic product, grew at an anemic 1.1 per cent annual rate last quarter as evidence that the Fed likely wants to see stronger growth.

In December, the Fed raised its benchmark rate modestly in response to a brighter economic picture, notably a job market nearing full health. The rate had been kept at a record low near zero since the depths of the 2008 financial crisis.

At the time, the Fed foresaw four additional rate increases in 2016. But since then, global economic pressures, financial market turmoil and a brief slump in the U.S. job market have kept the Fed on the sidelines.

Some economists have said they think conditions are ripe for the Fed to boost rates next month. Others say they foresee no action until after the election in December at the earliest.

Two close Yellen allies — William Dudley, president of the Federal Reserve Bank of New York, and Stanley Fischer, the Fed’s vice chairman — suggested in the past week that a strengthening economy would soon warrant a resumption of rate increases.

In her speech Friday, Yellen added that the Fed still believes that future rate increases, whenever they occur, will be “gradual.”

Some have said that if the Fed does decide to act in September, it would need to further prepare investors. After Yellen’s speech, data from the CME Group indicated that investors foresee only a 24 per cent probability of a rate hike in September and about a 58 per cent chance by December.

Yellen was the lead-off speaker Friday for the annual conference sponsored by the Federal Reserve Bank of Kansas City and attended by members of the Fed’s board of governors in Washington and officials from the Fed’s 12 regional banks and monetary leaders from around the world.

The conference’s theme is “Designing Resilient Monetary Policy Frameworks for the Future,” reflecting concern that the global economy has become trapped in a slump of low growth and low inflation and uncertainty about how central banks should respond.

In advance of Yellen’s speech Friday, George, Fischer and eight other Fed officials met Thursday with about 120 activists from the Campaign for Popular Democracy’s Fed Up coalition. The group of policy activists, labour unions and community groups has been lobbying the Fed to keep rates low to allow the economy to strengthen enough to benefit more Americans.

The group, wearing T-shirts bearing the slogan, “We Need a People’s Fed,” posed questions about economic policy and the need for diversity to the Fed officials who took part in the hour-long discussion.
Read More..

Post Views: 2,041
Previous Article

TSX Ends Week Flat Despite Positive Speech ...

Next Article

Your Guide to Canada’s Hottest Festivals This ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    John Summers: Uncovering dark stories of Canada’s legal system in new book

    December 28, 2020
    By admin
  • Business

    ‘Iconic political football’ Keystone XL nears end zone after 10-year battle

    August 5, 2017
    By admin
  • Business

    China wants to be world leader of artificial intelligence by 2030

    July 23, 2017
    By admin
  • Business

    Who wins and who loses when the Bank of Canada raises rates

    July 1, 2017
    By admin
  • Business

    Getting Business Advice – Where To Look?

    December 2, 2016
    By admin
  • Business

    The Curious Politics of a Montreal Mega-Mall

    February 23, 2019
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Ottawa Market
  3. Agora Publishing Consortium
  4. Le Journal Canadien
  5. Dominion: Food News
  6. LeCanadian.com
  7. The Ottawa Star
  8. Capitalistocracy.com
  9. Agora Books Author House
  10. First Nations Press
  11. The Etiquette Show
  12. Ontario People's Front





Mark's



Recent Posts

  • Ottawa International Crafts & Book Expo 2023: An assembly of literary brilliance
  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa
  • Diane Descôteaux – Une haïkiste passionnée: Le Salon d’Ottawa
  • How Canadians can access online casinos through mobile phones
  • Comment gérer un retard de vol ?
  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19

Most Viewed Posts

No Posts found

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating