Federal Reserve President Yellen (Janet l. Yellen). Visual information in China
United States Federal Reserve strengthened in December of this year is expected to raise rates again.
Federal Reserve President Yellen on November 4 to the United States House of representatives financial services Committee, said that the United States banking industry is healthier than in the past, but still faces great risk control challenges. She said that if the economic data support, in December, a meeting would be to take a decision on interest rates.
The Federal Reserve, New York Fed President William Dudley, the third most (Dudley) 4th also said rate hikes are possible options at the December meeting. Dudley said he fully agreed with Yellen's position, that is, if economic data showed the labor market and inflation to further improve, then meeting in December should raise interest rates.
As planned, the Fed's second number, Federal Reserve Vice Chairman Fisher (Stanley Fischer) will also be addressed.
Federal Reserve testified on the day theme is "Federal Reserve oversight and regulation of the financial system." In question, Yellen said Fed rate meeting at 15-16 in December to raise interest rates, but stressed that the decision has been made yet. early 30 year cycle of ed rate hike have been
The Fed is expected to "economic growth will be enough in the medium term, further improvement in the labour market and return to 2% of the inflation target, if information in line with the expected economic growth in the future, then December rise likely this year," Yellen said also stressed, "but the important thing is, we haven't decided. "
Yellen said, "If data and expected to comply with such direction, raising interest rates would have to be careful, to be increased in a gradual and prudent manner. We have reason to believe that the economic development with such speed, so we could raise interest rates at a very slow speed. Of course, if by doing so, we will very carefully look at whether expectations have been met. "
Yellen stressed that the Fed's decision will depend on the next round of economic data, the first is the October employment report on Friday.
"At this point, I see the United States economy is performing well," she notes that strong domestic consumption, it also decreases the volatility of global financial markets, as well as raising the federal debt ceiling to avoid a financial crisis in the near future despite threats to raise interest rates by 2. "Good news," she said, "in December this year will raise interest rates there is a high possibility."
Although the specific target markets confused time, Yellen also stressed that future interest rate path will have a range of a few years.
The Fed has said, even if, pace of interest rate hikes will also stage slower economic growth than before, because the pace of economic growth, when compared to historical standards, abnormal fatigue.
"I know the point of raising interest rates for the first time to the public is very concerned, but of more concern is the path of interest rate hikes. "Yellen said.
Be fed two giant speech affected dollar Treasury yields both rose. The dollar index rose 0.9%, to a two-month high. Gold gave up early gains, closing down for a sixth day, to $ 1107.5 an ounce, a one-month low.