Many Fed members saw even a u.s. rate hike this year as justified, shows the minutes from the FOMC’s meeting on september 20. Many of the participants expressed, however, also concern that the low inflation figures that have been seen in years may not only be of a temporary nature, writes Bloomberg News.
Several of the decision makers said that their decision on further interest rate increases this year will largely be determined by economic data over the next few months, increasing their confidence in the economy.
At the meeting left the american central bank, the range for Fed funds unchanged, but the bank also predicted another increase before the year’s end and announced an upcoming gradual reduction of the Fed’s balance sheet.
The probability of another increase in the year was after the publication of the protocol remained unchanged at 75 percent, writes Bloomberg News based on interest rate futures for January 2018.
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