Another 11% of respondents think the Fed will hold off until the second half of 2016 before pushing rates higher, and 13% don’t see rates going up before 2017. With another GOP debate scheduled next Tuesday, the question of whether the Fed boosts rates at its final meeting before the 2016 election year could continue to serve as a political football despite the Feds status as an independent agency. She reiterated that at the policy meeting last week, policy makers have started believing that the threat of global headwinds have ebbed, a reason which had kept the Federal Reserve from hiking rates at its September meeting.
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Economists estimated the USA added 180,000 jobs in October, bringing the unemployment rate to 5 percent, the Financial Times said, citing a Bloomberg survey.
During her semiannual testimony to Congress, Yellen said an interest-rate hike in December would be a “live possibility” if the economy stayed on track. A strong jobs number would only fuel expectations of rate hike-the first in almost a decade-next month. “This morning has more to do with the central bank comments we’ve had over the past week or so, especially what Ms. Yellen and Mr. Dudley had to say yesterday”.
Federal Reserve Board Chair Janet Yellen testifies before the House Financial Services Committee on the “Federal Reserve’s Supervision and Regulation of the Financial System” in Washington on Wednesday.
Asian markets reacted negatively to the growing prospect of a December rate hike, Reuters reported. “Though overseas investors are expected to pull out their funds from emerging markets including Korea if the FOMC raises it in December, the possible capital outflow would be restricted as a short-term basis”.
“What the committee has been expecting is that the economy will continue to grow at a pace that is sufficient to generate further improvements in the labor market and to return inflation to our 2 percent target over the medium term”, Yellen said Wednesday. The report, due at 8:30 a.m. ET (1230 GMT), comes ahead of Friday’s more comprehensive nonfarm monthly payrolls data. 84 percent. The Treasury Securities are often tied to the expectations about the Federal Reserve policy, and this was the highest it has been since springtime of 2011.
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In corporate news, the U.S. FDA has approved GlaxoSmithKline’s Nucala for use with other medicines to treat asthma in patients age 12 years and older. She reiterated that lifting rates sooner rather than later can help ensure that mortgage rates rise slowly.
