Fed rate hike postponed but could come in December. Shooting dollar – Il Sole 24 Ore

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This article was published on Oct. 28, 2015 at 19:06.
The last change is the 28 October 2015 at 20:17.

The US central bank has once again postponed the expected rise in interest rates. The FOMC, the Monetary Policy Committee which met yesterday and today, has left the Fed Funds unchanged at a record low, near zero. The next meeting is scheduled for 15 and 16 December. The Fed, however, has explicitly stated the next meeting as one in which could raise the cost of money and took off from the press at the impact of international economic developments on the US economy, an omission that according to observers could herald a rise rates in December. The decision to leave unchanged Fed funds was taken almost unanimously voted against only Jeffrey Lacker, president of the Richmond Fed, as that last month he would rather been driven up by 25 basis points.

“In determining whether it will be appropriate to raise the target range at the next meeting – the phrase that has taken the market – the Committee will assess the progress – both actual and expected – to the objectives of full employment and inflation to 2 percent “.

The more assertive tone of the press has convinced the markets that the next time would be good. So the dollar has taken the euro to 1.09 share, the highest for nearly three months, yields on ten-year US government securities are in turn rose to 2.08% and Wall Street wiped out the gains of the day.

The puzzle rate – the hypothesis of a close is on the launch pad for months now – it is complicated even more by the markets in recent weeks. We thought the worries and the answers to Europe and Asia. The quarterly pressure of Corporate America. The ECB is headed by Mario Draghi announced new stimulus for the fragile eurozone. Pro-growth measures are coming perhaps as early as Friday by a Bank of Japan facing a country once again smell of recession, while China, to fight the illness “emerging”, it has returned from the sixth easing policy monetary in less than a year. As for the Fed, among the dilemmas of his leadership, the December meeting could mark the first rate hike since 2006.

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