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Speaker of the US Central: decline in global economic risks are more likely to increase interest rate
NOVEMBER 5, 2015
Washington (dpa) - said Janet Yellen, president of the Federal Reserve Board (Fed), yesterday said the council increase the long-awaited price of US interest early December / December may begin.
Confirmed unrelenting in her testimony before a committee of the US Congress statement issued by the Council in October / October last, which says that the Monetary Policy Committee at the Federal Reserve expects continued growth of the US economy «sufficient pace to achieve further improvement in the high rate of inflation to 2 percent of the labor market, which is the target rate over the medium term» .
The Fed keeps interest rates close to zero percent since December / December 2008.
She softens that if economic data to be released in the coming weeks to promote economic growth and higher inflation expectations came the high interest rate could be «a possibility ».
She stressed that softens the Council did not take a decision on the fate of interest rates. She said the US economy leads well with the strong growth of domestic demand, and the risk of global economic and financial developments «decline» despite the continuing weakness of the US export performance.
The third quarter of this year has seen financial turmoil worldwide on the back of sharp decline in prices of Chinese stocks as a movement corrective of the market.
The unrelenting that the continuation of the rate of inflation below the target for the Federal Reserve level over the long term is due in part to the collapse of world oil prices since mid-2014, and the strength of the dollar that has made US imports cheaper over the past year.
The factors affecting the monetary policy decisions in the United States is the inflation rate and state of the labor market, where the Federal Reserve Board says it seeks to achieve the dual goal of a maximum rate of employment in the United States with price stability. Low inflation rate has been since the start of the recovery of the US economy in 2009, a major reason to keep the interest rate unchanged until now.
And renewed unrelenting warning that any initial increase in the interest rate is less important than the long-term trend, which is likely to keep on flexible economic policy historically for several years to come.
She softens the MPC «feel that move according to the specific timing, if it came economic data and expectations are justified for it, it would be wise, because we will be able to move more gradual and measurable way».
She «fully expect that the economy is evolving a way that allows us to move in a gradual manner and of course we do it, and we will watch closely whether our expectations were fulfilled ».
The US economy has recorded a sharp slowdown in growth during the third quarter due to a sharp downturn in the stock of companies.
According to preliminary data released by the Office of Analysis US economy last week, the US economy recorded a growth rate of 1.5 percent during the third quarter of this year, compared with a growth rate of 3.9 percent during the second quarter of this year.
It is scheduled that the Federal Reserve will hold its regular meeting to review monetary policy on 16 December / December.
The number of new jobs added by the US economy in September / September last less than the average number of monthly jobs during 2015 as a whole, and for the second month in a row.
At the same time the unemployment rate stood at 5.1 percent, the lowest level since 7 years, after he had reached the highest level during the financial crisis of 10 percent in October / October 2009.
It is scheduled US labor market data issued during October / October last Aleomaljmah.
The consumer price index fell in the past compared Ospettmbr the month of August / August by 0.2 percent, after seasonal variables put in the account, as a result of the continued decline in oil prices, according to US Bureau of Labor Statistics data. CPI has not seen any significant change since 12 months.
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NOVEMBER 5, 2015
Washington (dpa) - said Janet Yellen, president of the Federal Reserve Board (Fed), yesterday said the council increase the long-awaited price of US interest early December / December may begin.
Confirmed unrelenting in her testimony before a committee of the US Congress statement issued by the Council in October / October last, which says that the Monetary Policy Committee at the Federal Reserve expects continued growth of the US economy «sufficient pace to achieve further improvement in the high rate of inflation to 2 percent of the labor market, which is the target rate over the medium term» .
The Fed keeps interest rates close to zero percent since December / December 2008.
She softens that if economic data to be released in the coming weeks to promote economic growth and higher inflation expectations came the high interest rate could be «a possibility ».
She stressed that softens the Council did not take a decision on the fate of interest rates. She said the US economy leads well with the strong growth of domestic demand, and the risk of global economic and financial developments «decline» despite the continuing weakness of the US export performance.
The third quarter of this year has seen financial turmoil worldwide on the back of sharp decline in prices of Chinese stocks as a movement corrective of the market.
The unrelenting that the continuation of the rate of inflation below the target for the Federal Reserve level over the long term is due in part to the collapse of world oil prices since mid-2014, and the strength of the dollar that has made US imports cheaper over the past year.
The factors affecting the monetary policy decisions in the United States is the inflation rate and state of the labor market, where the Federal Reserve Board says it seeks to achieve the dual goal of a maximum rate of employment in the United States with price stability. Low inflation rate has been since the start of the recovery of the US economy in 2009, a major reason to keep the interest rate unchanged until now.
And renewed unrelenting warning that any initial increase in the interest rate is less important than the long-term trend, which is likely to keep on flexible economic policy historically for several years to come.
She softens the MPC «feel that move according to the specific timing, if it came economic data and expectations are justified for it, it would be wise, because we will be able to move more gradual and measurable way».
She «fully expect that the economy is evolving a way that allows us to move in a gradual manner and of course we do it, and we will watch closely whether our expectations were fulfilled ».
The US economy has recorded a sharp slowdown in growth during the third quarter due to a sharp downturn in the stock of companies.
According to preliminary data released by the Office of Analysis US economy last week, the US economy recorded a growth rate of 1.5 percent during the third quarter of this year, compared with a growth rate of 3.9 percent during the second quarter of this year.
It is scheduled that the Federal Reserve will hold its regular meeting to review monetary policy on 16 December / December.
The number of new jobs added by the US economy in September / September last less than the average number of monthly jobs during 2015 as a whole, and for the second month in a row.
At the same time the unemployment rate stood at 5.1 percent, the lowest level since 7 years, after he had reached the highest level during the financial crisis of 10 percent in October / October 2009.
It is scheduled US labor market data issued during October / October last Aleomaljmah.
The consumer price index fell in the past compared Ospettmbr the month of August / August by 0.2 percent, after seasonal variables put in the account, as a result of the continued decline in oil prices, according to US Bureau of Labor Statistics data. CPI has not seen any significant change since 12 months.
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