Fed to raise rates as Trump economy looms
But there are no guarantees 2017 will see the beginning of a tightening cycle, analysts say, given the uncertainties in geopolitics
Washington
THERE is little room for doubt that the US Federal Reserve will raise the benchmark interest rate this week for only the second time in a decade.
With unemployment at a nine-year low, jobs being created at an average of 180,000 per month, the US economy growing at better than 3 per cent in the most recent quarter and some signs of a pickup in inflation, the writing is on the wall.
Some members of the Federal Open Market Committee (FOMC), which sets the key federal funds rate, the basis for mortgage and lending rates, have even cautioned that failing to raise rates in December could harm the central bank's credibility, given expectations set by policymakers in recent months.
"All the necessary and sufficient conditions are there," Mark Zandi, chief economist at Moody's Analyt…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Fed survey cites inflation, US election as key financial stability risks
Oil prices steady after Iran plays down reported Israeli attack
G7 pledges swift aid for Ukraine, seeks to calm Middle East
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015