ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

Most US Fed members support rate hike 'relatively soon'

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Most US Fed members support rate hike 'relatively soon'
he FOMC after that meeting once again stated that the case for a rate hike was stronger but that it would wait for more signs of progress toward the dual objectives of 2% inflation and full employment. Image Source: AFP

Most US interest rate policymakers believe a rate hike to be appropriate "relatively soon," boosting the chances of an increase in December, according to meeting minutes released on Wednesday.

Some participants at the US Federal Reserve policy meeting early this month said an rate increase "should occur at the next meeting" to "preserve credibility," because failure to do so would be counter to the public signals sent so far, the minutes showed.

However, members also saw potential dangers abroad, with Britain due to exit the European Union (EU), European banks suffering capital weakness, a strengthening US dollar and rapid credit growth in China.

The Federal Open Market Committee (FOMC), which sets US monetary policy meet just days before presidential elections that ended in a surprise victory for Republican Donald Trump.

The FOMC after that meeting once again stated that the case for a rate hike was stronger but that it would wait for more signs of progress toward the dual objectives of 2% inflation and full employment.

Despite that 8-2 vote to stay on hold, "A few participants advocated an increase at this meeting," the minutes said.

ALSO READ: US elects Donald Trump as President

After raising rates last December for the first time in nearly a decade, the Federal Reserve so far has held steady, to avoid interrupting a fragile recovery despite expectations early in the year that there might be several increases in 2016.

However, policymakers at last appear set to pull the trigger at their final meeting of the year December 13-14, to ward off inflation amid signs of tightening labor markets.

During congressional testimony last week, Fed Chair Janet Yellen strongly suggested a rate hike was likely next month, giving markets a clear signal.

The US economy posted strong gains in the third quarter (Q3), growing at 2.9% and added a solid 161,000 jobs in October, continuing the robust job creation of recent months.

Still, FOMC members noted at the last meeting that growth figure had partly been driven by "transitory factors," such as "a surge in agricultural exports and a bounceback in inventory investment."

Unemployment fell a tenth of a point to 4.9% in October while inflation was steady, rising 0.2% in September.

Monetary policymakers will have one more jobs report to consider before meeting next month. Fed Fund futures on Wednesday put the likelihood of a December rate hike at 93.5%.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, highlighted the concerns of some members on the need for a rate hike to preserve the Fed`s credibility.

"Barring some sort of shock, they will get their wish," he wrote in a note to clients.

ALSO READ: Donald Trump vows to withdraw from TPP 'on day one'

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:
USEconomyinterest rate hikeJanet YellenDonald TrumpUS Federal ReserveInterest Raterate hike
Written By: AFP
Updated: Thu, Nov 24, 2016
08:55 am
Washington , AFP
RELATED NEWS
Donald Trump vows to withdraw from TPP 'on day one' Donald Trump vows to withdraw from TPP 'on day one'
US elects Donald Trump as President US elects Donald Trump as President
Dollar strengthened post Trump's win; Rupee saw median change Dollar strengthened post Trump's win; Rupee saw median change
USA elects Donald Trump as President; what it means for India USA elects Donald Trump as President; what it means for India
US presidential election, interest rate uncertainty spurs gold sales US presidential election, interest rate uncertainty spurs gold sales

LATEST NEWS

PNB Q3 Results: Net profit falls 44% to Rs 629 crore, misses analysts' estimates

Top Gainers & Losers: Bajaj Finance shines on Q3 beat, PowerGrid gives in to selling pressure

Tech Mahindra Q3 Results: IT major beats analysts' estimates with 5% revenue growth, 80 bps margin expansion

Here's what consumer electronics tech sector expects from Union Budget 2023

Inflation in India expected to come down to 5% in 2023 and 4% in 2024: IMF

Adani-Hindenburg saga rekindles worries over PNB's tryst with bad loans but MD Goel unfazed

Bajaj Finance woos Street with record Q3 profit; analysts see up to 53% upside in stock

Traders' Diary: Buy, sell or hold strategy on Pidilite, Tata Consumer, Asian Paints, Indian Oil, BPCL, 15 other stocks today

Hindenburg research report on Adani: Know the man who rattled Asia's richest man and Indian stock market; Hindenburg's past targets and more

Vedanta shares give up initial gains amid volatile trade; how the Street is reading company's dividend

  • 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
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV