The president of the institution has announced the increase in a quarter-point rate hikes, highlighting a “climate of uncertainty” after the presidential election.
The mechanism of higher interest rates in the United States is finally dégrippé. At the end of the two-day meeting, the monetary policy Committee of the federal Reserve (FOMC) not only decided on Wednesday 14 December, to raise by a quarter-point interest rates (which are in a range of 0.50% to 0.75%), but he also anticipated three hikes in 2017, instead of the two originally planned.
This movement indicates that the central bank (Fed) is now a little more optimistic on the outlook for the u.s. economy, without, however, giving the impression to pre-empt the decisions that Donald Trump could take once installed in the White House.
During his press conference, Janet Yellen, the Fed president, has endeavoured to show that there was no runaway in her decision. Even if it has been taken unanimously by the members of the FOMC Mme Yellen has used a variety of expressions to temper the interpretations.
” The growth is a touch stronger, unemployment, a shade lower “, she explained, adding that ” we expect that the terms and conditions of employment will strengthen a little more, “, while inflation continues to move towards the 2 %, which is the goal of the Fed. As regards the prospect of raising rates three times instead of two in 2017, Mme Yellen has called this a change of” fit ” very modest “.
Speculation about the presidency, Trump
This caution is explained by the fact that the president of the Fed…