The chairman of the Federal Reserve (Fed), Janet Yellen, insisted on Friday in a gradual increase in interest rates with an improvement in the US economy, but expressed caution about “disturbances” that can affect the economic course.
in a speech at the annual monetary conference of Jackson Hole (Wyoming), the leader of the Fed said that the first world economy is approaching “the full employment goals and price stability “.
” the arguments for a rise in interest rates stepped up in recent months, “he said, stressing that the Fed continues to” provide for a gradual increase in interest rates over time. ”
the American growth, which was only 1.1% in the second quarter is expected to reach this year 2%, the Fed hopes, when the annual inflation is 0.9%, approaching slowly the target of 2%. The unemployment rate was 4.9% in July.
Yellen did not indicate any date for a rise in interest rates and left all options open for the next meeting of the monetary policy committee of the bank US plant, which will take place within three weeks.
“our ability to predict the evolution of rates is very limited” given that it is necessary to respond “to disturbances that can affect the economy,” he warned.
the next meeting of the Fed will be on 20 and 21 September, the penultimate before the November presidential and Fed benchmark rates are currently between 0.25% and 0.50%.
the US central bank raised interest rates in December for the first time in almost ten years, but since then has not returned to readjust its monetary policy, taking into account the slowdown of the Chinese economy and the risks posed by ‘ Brexit ‘, the British decision to leave the European Union.
“monetary policy is not a predetermined trajectory,” Yellen insisted.
in a more than 20-page speech, the ruling the Fed also pointed out some instruments that the central bank can use if there is a further slowdown of growth and defended the measures that were adopted after the 2008 financial crisis.
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