The Fed looks more no direction than one direction

“It’s too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher,” said William Dudley, President of Federal Reserve Bank of New York. Indeed, the US economy is dealing with contradictory economic signals that turn quite difficult a consensus of a clear path ahead for another round of rate hikes.

The combination of ongoing low inflation and higher than expected economic growth makes many wonder what the next right move could be, this way increasing uncertainty over how the Fed will act in the next few months despite Wall Street’s expectations of a rate hike by December 2017. In the meantime, the Governing Council of the European Central Bank (ECB) decided that interest rates will remain unchanged.

Leave a Reply