LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Fed's Rosengren sees three to four rate hikes next year

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Mon, Oct 16, 2017
10:22 am
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

The Federal Reserve will probably need to raise interest rates in December and then three of four times "over the course of next year," assuming the U.S. unemployment rate continues to fall and inflation rises, Boston Fed President Eric Rosengren said.

If inflation reaches the Fed`s goal while the unemployment rate, now at a 16-year low of 4.2 percent, is below 4 percent that may be a signal that the economy could be overheating, Rosengren suggested in an interview.

To stabilize inflation at 2 percent, Rosengren said, "you might have to overshoot" by pushing rates higher than the level expected in a healthy economy. In September, Fed officials estimated that so-called neutral rate to be 2.8 percent.

The comments mark Rosengren, who does not vote on policy this year, as slightly more hawkish than most of his colleagues.

The Fed left rates unchanged last month, but signaled it would likely raise them again in December, and three more times next year.

Still, Rosengren`s view lags the faster rate-hike path signaled by many monetary policy rules, including one authored and championed by Stanford University professor John Taylor.

Monetary policy rules specify where interest rates should be given the level of inflation and the state of the economy, and central bankers often use them to guide their rate-setting. 

Rosengren spoke at an interview on Saturday at the close of a two-day conference on monetary policy rules, during which Taylor gave a formal presentation.

Taylor, among several candidates being considered by President Donald Trump to run the U.S. central bank after Fed Chair Janet Yellen`s term ends in February, has long argued that the Fed has kept rates too low for too long because of the risk of unwanted inflationary pressures.

Taylor also embraces legislation, now under consideration by the U.S. Congress, that would require the Fed to follow a monetary policy rule like his when setting policy. That is a requirement resisted by many Fed officials, including Yellen and Rosengren, who said at the conference that legislating a monetary policy rule would be "counterproductive."

Still, asked how he would feel if the next Fed chair wanted to enshrine a rule that suggests a faster pace of rate hikes into law, Rosengren sounded unbothered.

"My hope would be that they were flexible and pragmatic enough that if the rule wasn’t working particularly well that they would make adjustments," he said. "For example, reading John Taylor’s paper at this conference, he seemed pretty flexible: he talked about a variety of different rules, talked about different ways that they could be implemented."

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

WhatsApp new privacy policy to be rolled back? Petition reaches Supreme Court

EPFO Pension: Your Provident Fund (PF) structure may change soon - Here is why

7th Pay Commission latest news: Salary up to Rs 2.08 lakh plus DA, HRA, TA; check this 7th CPC offer details at upsconline.nic.in

New coronavirus shocker from China! Now, virus found in ice cream - Check eye opening details here

Mutual Fund SIP Calculator 2021: Top money making trick! Check how just Rs 5 lakh can be turned into over Rs 1 cr through small investments

Looking for mid-range budget-friendly laptops? VAIO with Nexstgo launches new series - Prices, specs, features and all you need to know

EPF vs PPF vs VPF vs NPS: Money making strategy! Top personal finance experts say do this to earn big gains

How to save income tax: Want to save up to Rs 46,800? Here is a method and step by step guide for tax-saving

Amazon.in Great Republic Day Sale: Up to 40% off! Check top deals you can avail

Here is why some Twitter employees locked their accounts; got even personal security from company

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved