Central banker: rate hike ‘plausible’
THE prevailing view that the US Federal Reserve will raise the key interest rate next month is “plausible”, a voting member of the monetary policy committee said.
“Absent significant negative economic news over the next month, the market’s assessment of the likelihood of tightening in December seems plausible,” Boston Federal Reserve Bank President Eric Rosengren said.
The policy-setting Federal Open Market Committee (FOMC) will next meet on December 13-14 and is widely expected to increase rates for the first time since December 2015.
With unemployment at 4.9 percent the labour market is close to full employment. Inflation is also approaching the Fed target and is expected to reach 2pc next year. –