Jakarta (Benchmark News) – Notulensi meeting of the Federal Open Market Committee’s September show that the central bank will conduct monetary tightening this year, with some officials said the need to raise rates soon. ” Some members argued that the increase in the Federal Funds target Rate is needed soon economic development runs in accordance with expectations, “wrote notulensi The Fed meeting of 20-21 September, as quoted Bloomberg.
The Fed will change interest rates of reference in the range 0.25%-0.5% at a meeting last month, even after a majority of the 17 participants still predict at least there will be a rise this year. S&P 500 index extending the strengthening after the release of this notulensi, while the U.S. dollar remain high and bonds trim losses earlier.
“The possibility of a rise in interest rates is very likely at the end of this year,” said Randall Kroszner, a Professor of Economics at the University of Chicago Booth School of Business and a former Governor of The Fed, was quoted as saying Bloomberg. ” If there are no big surprises, I think they will raise rates in December, “he said. The Chairman of The Fed’s Kansas City region, Esther George, Cleveland, Loretta Mester and Eric Rosengren of Boston differed at the meeting about a rise in interest rates.
” Among the participants in favor to wait for further evidence of the economy’s pace is in line with the purpose of the welcome Committee, “wrote notulensi. Earlier, officials of the Fed interest rate increases on suspending any meetings this year as the U.S. economy experienced a number of setbacks, which influenced the slowdown in Asian economic growth to effect Brexit. Inflation below the central bank’s target of 2% for over the last four years has reduced the urgency of rising interest rates…(Red)