Will The Fed Finally Raise Interest Rates In December? - page 4

[Khurram Mustafa]

Mirko Cerulli:

Despite "bookmakers" odds, I don't think a rate hike is needed at this time because rates have already risen, and it's already priced into the bond market.

The Fed, which is obligated to conduct monetary policy based on a dual mandate of managing inflation and employment, has seen the unemployment rate drop to 5%, but depending on how inflation is measured, it is still well short of the Fed's 2% target. And then there's the stubbornly strong U.S. dollar, which will only gain strength if and when interest rates start to rise.

A strong dollar is particularly troublesome for multinational U.S. companies that sell goods and services outside the United States.

A Fed rate hike is a signal of a stronger economy, but that's not how it is likely to be interpreted.

WOW, Good explanation and really thankful to you

I also think that Rate hike is not ready well similar predictions or forecasting make me satisfied :)

[[Deleted]]

http://tpmelectioncentral.com/2015/11/29/fed-officials-boost-rate-hike-expectations.html

[[Deleted]]

This question got a lot more complicated with the ECB pursuing monetary expansion just when the US is about to tighten the monetary supply without the normal indicators of inflation exceeding 2%.

On the other hand if we don't raise interest rates at some point, what is the Fed going to do if the US economy really needs monetary stimulus?

The US isn't Europe or Asia that can just put in negative rates when the dollar and US Treasury Bond is the bricks and mortar of the international financial system. So some raising now might be in order at the very least to put back a tool in the Feds toolbox if there is another recession in the near future.

[ffoorr]

I just read on a forum that the FED won't raise rate untill 2017, someone heard it on TV, it seem unbeleivable.

http://www.boursorama.com/forum-cac-40-hausse-des-taux-fed-pas-avant-2017-440371536-1

I google for this informatin on the WEB, I can't find it.

Now let's make some perspective ... imagine this information is true ...

This would made the dollar weaken against the euro, and the EURUSD jump suddendly .....

The same movement that happen on 3 december ...

Bad economic perspective would made the oil go lower... just what happen

There was nothing in the Draghi déclaration to justify such an EURUSD jump,

Now if this information (temporised raise raise)  has been delivered to market at the same time Draghi was doing his speech, this could explain what happen.

Everyone thougth Draghi speech provoqued the jump ....!?

[Mirko Cerulli]

Also Bank of England won't raise rates until 2017 (Previously: March 2016).

Recently liftoff dissents: Bernanke, Larry Summers and two groups unite against the Fed’s Yellen.

She will use all her powers of persuasion to secure unanimous support for an interest rate increase. 

Nothing definitive. Let's see. 

[ffoorr]

Hello Marko,

I think we cannot trust yellen, all this is liar poker,

[Mirko Cerulli]

ffoorr:

Hello Marko,

I think we cannot trust yellen, all this is liar poker,

I fully agree with you.

[Tan Phan Ngoc]

up 0.25% sure

[Stuart Browne]

If you read it on a forum or heard it on TV, it must be true!!! ;-)

[ffoorr]

please all, read Bernanke speech about deflation and QE

http://www.federalreserve.gov/boarddocs/Speeches/2002/20021121/default.htm