Yellen affirms rate hike in testimony. Is this happening this December?

December 5, 2017

Are we expecting US rate hike this December?

Yellen affirms rate hike in testimony. Is this happening this December?

This article is originally referred from Orbex Market Recap

Last week saw the markets trading a bit volatile with lot of economic and political developments.

Economic data from the U.S. showed a strong improvement especially with the third quarter GDP coming in higher than expected.

This helped increase the expectations for a rate hike this December. President Trump’s Fed candidate, Jerome Powell gave his testimony to the congress in his bid to be selected as the Fed Chair.

Oil prices were seen to be muted as OPEC and Russia agreed to extend production cuts into 2018 end.

Yellen affirms rate hike in testimony

The Fed Chair Janet Yellen gave her final testimony to the U.S. Congress. In her prepared remarks, Yellen cemented expectations for a rate hike in December.

This came as the outgoing Fed Chair gave an optimistic assessment of the U.S. economy.

Yellen also signaled her confidence that inflation will move closer to the Fed’s 2.0% inflation target rate.

“The economic expansion is increasingly broad-based across sectors as well as across much of the global economy,”

Yellen said.

She expects that gradual adjustments to the monetary policy will support the economy to expand with further tightening expected in the U.S. job markets. She said that this could potentially rise to higher wages and inflation.

The markets were trading stronger after the remarks as the U.S. dollar was boosted by upbeat GDP numbers and pending home sales data released ahead of the testimony.

Original Source: Orbex Market Recap

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