The Fed indicated it could finally raise interest rates in December, after keeping interest rates steady in October. Bobbi Rebell reports.
December rate hike on agenda
Mark December on your calendars.
The Fed has left interest rates unchanged in October, but is tipping its hat- about the next meeting near the end of the year.
It’s statement including: ” In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress — both realized and expected — toward its objectives of maximum employment and two percent inflation.”
The overt reference to December caught investors by surprise. Also new: the central bank downplayed troubles in overseas economies, even though central banks in Europe, Japan and China have been easing policy.
Wells Fargo’s Anika Kahn:
(SOUNDBITE) ANIKA KHAN, SENIOR ECONOMIST, WELLS FARGO (ENGLISH) SAYING:
“In the September statement as you may recall they said that overall development may restrain economic growth and put downward pressure on inflation. They did away with a lot of that in this statement and made global development just a factor which is important.”
While most Fed policymakers have said they want to raise rates this year, some have been more hesitant- pointing to the weakening global economy and the damage that could do to U.S. economic growth.