ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • 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
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings
  • Home loans, EMIs to get more expensive: Now, this PSU bank hikes interest rates by .20%
  • Mask mandatory in Delhi as Covid-19 cases rise again: Check new rules and penalty
  • US inflation data: Break on 40-year peak, global markets rally - key highlights
  • Microsoft layoffs 2022: IT giant sacks around 200 more employees as recession fears rise
Read in App
Business News » World News

For Fed, few reasons to end 'patient' stance on rates

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

With inflation muted but other risks to the U.S. economy on the rise, the Federal Reserve`s patience on policy is nowhere close to running out, with one previously hawkish central banker on Tuesday signalling he could wait until at least June before touching interest rates again.

"It may be several meetings of the Federal Open Market Committee before Fed policymakers have a clearer read on whether the risks are becoming reality - and by how much the economy will slow compared to last year," Eric Rosengren, president of the Federal Reserve Bank of Boston, told a chapter of the National Association of Corporate Directors in Boston.

That timeline suggests that for him at least, the Fed`s next two meetings in mid-March and in late April would be too soon to expect a change to policy. The next meeting after that takes place in mid-June.

It was a stark shift for a policymaker who for most of last year warned that the economy could overheat without rate hikes. On Tuesday, Rosengren noted little inflation pressure and sharp market swings at the end of last year made those concerns seem "less pressing."

At the same time, slower growth in Europe and China and ongoing trade conflict make it hard to have confidence about the U.S. economy staying strong, Rosengren said.

"Patiently watching to see how the economy develops is the appropriate policy for now," he said.

Ever since the Fed unanimously embraced a wait-and-see approach to rate hikes in January, the big question was how long that patience would last.

"Months, not weeks," according to Dallas Fed President Robert Kaplan, who earlier on Tuesday added worries about record corporate debt to the list of factors that bolster his commitment to patient policy.

"I think there is still slack in the labour market, and until we see wages growth really pick up I’m going to believe that there are still more Americans out there," said Minneapolis Fed President Neel Kashkari, who has opposed rate hikes for more than a year. "I’m going to do my part not to screw it up, and raise rates unnecessarily that could end the expansion."

Fed policymaker comments Tuesday follow those of Fed Chair Jerome Powell and Fed Vice Chair Richard Clarida last week. Both laid out a case for sticking to patience even though some economic models suggest the current 4 percent unemployment rate justifies jumping in with rate hikes to head off inflation.

The risk of tightening rates unnecessarily, curbing a 10-year recovery without cause, is now greater than the risk inflation may unexpectedly spike, Clarida said last week, laying out a case now embraced by most, if not all, Fed policymakers

Data on the U.S. economy has continued to be mixed, with reports on Tuesday showing a rise in home sales and a rebound in service sector activity, following gloomy reports on the manufacturing sector last week. U.S. stocks have recovered from much of their late-2018 slump, but debt markets are still pricing in risks.

Asked if a rate hike would be warranted if the economy develops as he expects, Rosengren was noncommital but said there could be circumstances that would require tightening to be "on the table." He added that the Fed`s "patient" stance means not giving "a lot of guidance" as to what the Fed is expecting.

(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
Updated: Wed, Mar 06, 2019
12:15 am
Reuters
RELATED NEWS
OPEC cuts oil demand forecasts as economic growth slows OPEC cuts oil demand forecasts as economic growth slows
India to be fastest growing economy this year - What government source said India to be fastest growing economy this year - What government source said
Surge in credit demand, falling liquidity may lead to credit tightening: Report Surge in credit demand, falling liquidity may lead to credit tightening: Report
Government releases Rs 1.16 lakh crore of tax devolution to states Government releases Rs 1.16 lakh crore of tax devolution to states
Asian shares slip ahead of crucial US inflation data Asian shares slip ahead of crucial US inflation data

LATEST NEWS

Stocks to buy today: HDFC AMC, Mphasis, Infosys, Voltas among 20 stocks for profitable trade on August 12

General insurance sector logs 21% premium growth in July: IRDAI

BMW M4 Competition Coupe 50 Jahre M Edition launched in India: Check price and specifications

Raju Srivastava Health Update: Yogi Adityanath speaks to relatives of comedian

Instagram users ALERT! Are you being tracked by Meta-owned platform?

OPEC cuts oil demand forecasts as economic growth slows

Industry says new digital lending norms to help them scale up, become more responsible

Apple iPhone 14 Pro Max, iPhone 14 Pro likely to be expensive than iPhone 13 Pro models - All you need to know

SSC CPO Delhi Police: Recruitment process for posts of Sub Inspector in CAPF, Delhi Police begins, last date on 30 August - details

Vivo V25 Pro India launch set for August 17 - Expected price, specifications and more

  • 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
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV