The three leaders of the U.S. Federal reserve confirmed the chances of a rate hike in December


Moscow. On 5 November. The Chairman of the Federal reserve system (the fed) Janet Yellen and the head of the new York reserve Bank, William Dudley Wednesday reiterated the possibility of increasing interest rates in the US at the next meeting of the Central Bank, which will be held on 15-16 December, reports Bloomberg.

However, fed Vice Chairman Stanley Fischer expressed confidence that inflation in USA is not too far from the Central Bank’s target level (2% annual) that markets are also considered a signal of an early increase in the cost of credit.

Yellen in her speech in the Committee on financial services of the house of representatives of the us Congress called the decision to raise rates in mid-December “a real possibility”. However, she reiterated that an important condition for monetary policy is the continuation of the positive macroeconomic data.

According to her, the heads of the fed expects that economic recovery in the US will lead to further strengthening of the labour market and the approximation of inflation to the target. However, she stressed that the rate increase will be gradual, taking into account the situation in the us economy.

“At this stage the US economy is working well,” said Yellen.

Dudley, speaking later in new York, agreed with the words of the fed Chairman about the possibility of a December rate hike, adding: “let’s see what the data will show”.

The fed keeps the interest rate on Federal loan funds (federal funds rate) target range of zero to 0.25% per annum from December 2008. The last increase was implemented in June 2006. Experts expect that the first increase in rates in this cycle will be 0.25 percentage points.

In the communiqué of the October fed meeting contained a signal of possible increase in rates “at the next meeting” in December. The decision will depend on macroeconomic indicators of employment and inflation and expectations on them.