Yesterday’s retail sales report was just the latest to cast serious doubts over the strength of the US recovery at a time when the Fed is struggling to convince the markets that now is the time for a rate hike.
Advertisement
The precious metal soared to $1,159.80 as of Friday, its highest since August 28, following minutes of the central bank’s policy meeting that indicated the Fed was circumspect regarding the tightening of financial rules.
“He added that “… considerable uncertainties …” surrounded the USA economic outlook, particularly the fetter on exports from a slowing pace of global growth, declining investment caused by the decline in oil prices and the disappointing recent drop in U.S. jobs growth.
Bank Indonesia’s benchmark rupiah rate (Jakarta Interbank Spot Dollar Rate, abbreviated JISDOR) appreciated 0.41 percent to IDR 13,466 per U.S. dollar on Monday (12/10).
Although several Fed officials have been vocal in their support for a rate hike before the year-end, traders and investors remain doubtful about the Fed’s actions.
Except that’s not been the case for the USA economy.
Lael Brainard, a member of the U.S. Federal Reserve Board of Governors, has called for the central bank to hold interest rates for a few time.
Mr. Dudley instead argued in favor of the Fed pursuing its monetary policy mission based on a broad array of factors, balancing a systematic approach to policy-making that also employs judgment.
Silver for September delivery rose 4.6 cents, or 0.29 percent, to close at $15.864 per ounce, while platinum for October delivery added $14.5, or 1.48 percent, to close at $995.90 per ounce. Fischer spoke Sunday to the Group of Thirty, a private-sector organization holding an banking seminar during the global Monetary Fund’s annual meetings in Lima, Peru.
Tarullo also appeared skeptical of the idea that further job growth will push inflation up toward the Fed’s 2 percent target. However, a premature rise in rates carries the possibility of putting further downward pressure on inflation, which would be hard to manage.
The argument made there by Fischer, and echoed by many Fed watchers and folks on Wall Street, was that with the Fed more or less meeting its labor market goal of “full employment”, inflation need not be running at 2% for the Fed to raise rates.
Hedge funds and other money managers cut net bullish bets on the dollar to the least since September previous year in the week through Tuesday last week, according to data from the US Commodity Futures Trading Commission in Washington.
Advertisement
Even though emerging market officials and others are prodding the Fed to hike rates, Fischer said the United States would proceed carefully.
