Fed December Rate Hike Still Possible


The US economy is performing well and it would be appropriate to adjust rates in the December meeting, if incoming economic data supports it, the Federal Reserve Chair Janet Yellen reiterated in her testimony before the House Financial Services Committee in Washington.

The Fed Chair said domestic spending has been growing at a solid pace, net exports are soft while some of the downside risks to the economy regarding global economic and financial developments diminished. Inflation is still running below the 2 percent target due to cheap energy and non-energy import price but as such prices stabilize, the inflation will move back to target.

The Fed chair also added that if incoming information supports it, a December rate hike could be a possibility although no decision has been made about it. The decision will depend on the committee’s assessment of the economic outlook.

 Fed December Rate Hike Still Possible


Joana Taborda | joana.taborda@tradingeconomics.com
11/4/2015 5:29:15 PM