While some investors had speculated that Brainard would switch over to the more hawkish camp, the Fed governor had said on Monday she wanted to see a stronger trend in United States consumer spending and evidence of rising inflation before the Fed raises rates.
Advertisement
While some investors had speculated that Brainard would switch over to the more hawkish camp, the Fed governor said Monday she wanted to see a stronger trend in US consumer spending and evidence of rising inflation before the Fed raises rates.
The central bank is also due to reveal its updated economic forecasts followed by a press conference by Fed Chair Janet Yellen. No governor has been on the losing side of a Fed vote since 2005.
The Dow Jones industrial average gave up 243 points, or 1.3 percent, to 18,082 as of 1:15 p.m. Yesterday, after Brainard’s speech, the Dow gained back about 200 points.
Gold reversed Monday’s losses to trade higher Tuesday morning in response to a at its meeting next week.
Minneapolis Fed President Neel Kashkari said “politics does not play a part” in the Fed’s deliberations and that current low USA inflation means there is no “huge urgency” to hike.
Fed Gov. Lael Brainard on Monday struck a dovish tone, saying the central bank needed to be prudent in considering future rate rises.
David Kelly, chief global strategist for JPMorgan Funds, said he thinks Federal Reserve policymakers seem “noncommittal” and aren’t sure if they should raise interest rates now or not.
After Rosengren’s hawkish comments on Friday and Brainard’s dovish comments on Monday, the “information” and “misinformation” as some traders are calling it, have pushed investors into wait-and-see mode.
Brainard, a former White House official in the administration of Bill Clinton and Treasury Department official in the Obama administration, is seen as a contender for a top job in a potential Hillary Clinton administration.
Republican Presidential candidate Donald Trump accused the Fed on Monday of keeping interest rates low because of political pressure from the Obama administration.
If the FOMC goes next week, the likely timing of the next action would be March or even June next year. Deutsche Bank downgraded the stock to a hold rating.
The global economy has been sputtering.
Investors have been anxious about a possible slowdown in economic growth.
“The fallout from adverse foreign shocks appears to be more powerfully transmitted to the United States than previously”, she said. Heating oil sank 2 cents to $1.42 a gallon. The Fed, which hasn’t hiked interest rates this year after raising rates back in December for the first time in almost a decade, meets next week.
About 74 percent of 62 economists surveyed by The Wall Street Journal this month also believed that the Fed will wait until December to raise rates. But he does take part in the discussions. Governor Brainard said economic progress continues domestically, but the Fed will continue to keep the policy loose. “However, we stand by our call that the recent drop in the market will not ultimately prove to be a buying opportunity just yet”, said Nick Raich, CEO at The Earnings Scout.
Advertisement
But US economic growth stalled previous year.
About the Author
This author has not added a biography. Meanwhile Alex Crown has contributed 166198 posts.
Click here
to view them.
