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Fed vice chair still sees two more rate hikes this year - CNBC

Reuters 

By Jonathan Spicer

- The U.S. Federal Reserve remains on track for two more increases this year despite some weak recent economic data including a drop in inflation, Vice Chair Stanley said on Friday.

"We're feeling that way. So far I haven't seen anything to change that," he said on CNBC when asked whether two more policy tightenings in 2017 were appropriate, adding the is "not tied to" that plan.

also dismissed speculation that U.S. President Donald Trump's comments on the dollar would sway policymaking, and warned that France's election on Sunday could raise another question mark over an improving world economy.

The median policymaker forecast in mid-March, when the U.S. central bank last tightened monetary policy, was for two more rate increases by year end.

Weaker-than expected-readings on domestic growth, monthly and retail sales in recent weeks have reinforced the notion that the U.S. economy slowed in the first quarter, while investors are also questioning how realistic Trump's stimulus plans are. [nL1N1HL1GU]

Trump's comments last week, in which he said the was "getting too strong" and suggested that Janet Yellen could serve another term as chair, helped reduce market expectations to only one more this year. Prior to those comments being published, traders at CME had expected two more hikes in 2017. [nL1N1HK1SV] [nL1N1HK1Y2]

Addressing Trump's comments on the currency, Fischer, whose term as vice chair ends next year, said: "We do not take a particular statement by even a president into account in making our decisions on the "

He noted that a recently depreciated dollar, which generally benefits U.S. exporters, "has been of some help" to the U.S. economy even while "that has not been part of our plan."

Overseas economic surprises, such Britain's vote to leave the European Union last year, have delayed the U.S. central bank's tightening plans. The latest wild card is France's first-round election on Sunday in which some presidential candidates oppose the country's participation in the EU.

"Considering that the Franco-German partnership is the absolute center, and a vital part, of the European project, that would be a very big thing and it would be very hard to know how it would work out (given) you'd be entering a very unknown world," said of the vote.

"We pay attention to what happens abroad," he added. "We think about what impacts it will have on us."

(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Fed vice chair still sees two more rate hikes this year - CNBC

REUTERS - The U.S. Federal Reserve remains on track for two more interest rate increases this year despite some weak recent economic data including a drop in inflation, Fed Vice Chair Stanley Fischer said on Friday.

By Jonathan Spicer

- The U.S. Federal Reserve remains on track for two more increases this year despite some weak recent economic data including a drop in inflation, Vice Chair Stanley said on Friday.

"We're feeling that way. So far I haven't seen anything to change that," he said on CNBC when asked whether two more policy tightenings in 2017 were appropriate, adding the is "not tied to" that plan.

also dismissed speculation that U.S. President Donald Trump's comments on the dollar would sway policymaking, and warned that France's election on Sunday could raise another question mark over an improving world economy.

The median policymaker forecast in mid-March, when the U.S. central bank last tightened monetary policy, was for two more rate increases by year end.

Weaker-than expected-readings on domestic growth, monthly and retail sales in recent weeks have reinforced the notion that the U.S. economy slowed in the first quarter, while investors are also questioning how realistic Trump's stimulus plans are. [nL1N1HL1GU]

Trump's comments last week, in which he said the was "getting too strong" and suggested that Janet Yellen could serve another term as chair, helped reduce market expectations to only one more this year. Prior to those comments being published, traders at CME had expected two more hikes in 2017. [nL1N1HK1SV] [nL1N1HK1Y2]

Addressing Trump's comments on the currency, Fischer, whose term as vice chair ends next year, said: "We do not take a particular statement by even a president into account in making our decisions on the "

He noted that a recently depreciated dollar, which generally benefits U.S. exporters, "has been of some help" to the U.S. economy even while "that has not been part of our plan."

Overseas economic surprises, such Britain's vote to leave the European Union last year, have delayed the U.S. central bank's tightening plans. The latest wild card is France's first-round election on Sunday in which some presidential candidates oppose the country's participation in the EU.

"Considering that the Franco-German partnership is the absolute center, and a vital part, of the European project, that would be a very big thing and it would be very hard to know how it would work out (given) you'd be entering a very unknown world," said of the vote.

"We pay attention to what happens abroad," he added. "We think about what impacts it will have on us."

(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Business Standard
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Fed vice chair still sees two more rate hikes this year - CNBC

By Jonathan Spicer

- The U.S. Federal Reserve remains on track for two more increases this year despite some weak recent economic data including a drop in inflation, Vice Chair Stanley said on Friday.

"We're feeling that way. So far I haven't seen anything to change that," he said on CNBC when asked whether two more policy tightenings in 2017 were appropriate, adding the is "not tied to" that plan.

also dismissed speculation that U.S. President Donald Trump's comments on the dollar would sway policymaking, and warned that France's election on Sunday could raise another question mark over an improving world economy.

The median policymaker forecast in mid-March, when the U.S. central bank last tightened monetary policy, was for two more rate increases by year end.

Weaker-than expected-readings on domestic growth, monthly and retail sales in recent weeks have reinforced the notion that the U.S. economy slowed in the first quarter, while investors are also questioning how realistic Trump's stimulus plans are. [nL1N1HL1GU]

Trump's comments last week, in which he said the was "getting too strong" and suggested that Janet Yellen could serve another term as chair, helped reduce market expectations to only one more this year. Prior to those comments being published, traders at CME had expected two more hikes in 2017. [nL1N1HK1SV] [nL1N1HK1Y2]

Addressing Trump's comments on the currency, Fischer, whose term as vice chair ends next year, said: "We do not take a particular statement by even a president into account in making our decisions on the "

He noted that a recently depreciated dollar, which generally benefits U.S. exporters, "has been of some help" to the U.S. economy even while "that has not been part of our plan."

Overseas economic surprises, such Britain's vote to leave the European Union last year, have delayed the U.S. central bank's tightening plans. The latest wild card is France's first-round election on Sunday in which some presidential candidates oppose the country's participation in the EU.

"Considering that the Franco-German partnership is the absolute center, and a vital part, of the European project, that would be a very big thing and it would be very hard to know how it would work out (given) you'd be entering a very unknown world," said of the vote.

"We pay attention to what happens abroad," he added. "We think about what impacts it will have on us."

(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22