Pressures within the US Central Bank to change monetary policy violation

263 see August 25, 2014 9: 03 am

(Independent) of ...
Increasing pressure within the fed (US Central Bank) officials to acknowledge clearly in the next month by an improvement in the US economy and lay the groundwork for the first increase of interest rates in nearly a decade.

Officials and advisers in the reserve, quoted by Reuters that the indicators of improving economy and growing concern about the dangers of keeping interest rates very low for a long time the cradle of discussions about reworking the monetary policy statement.

It was not clear whether the Central officials would travel at their next meeting on 16 and 17 September to delete essential parts of the statement language that they use to curb expectations of raising interest. And if they don't, the month of October looks like a good bet.

Said Dennis Lockhart, President of the Federal Reserve Bank of Atlanta, said in an interview, "there are some changes in the language on the table and must be in upcoming meetings." despite the claim of a few administrators to changes the Lockhart believes that to do so in September was "still premature."

And add, delete or modify some of the words in the statement issued by the Central Bank after meeting is fraught with risks. If there was a misunderstanding of a stronger Central Bank in the world, this can cause a shock to the global financial markets and undermine the economic recovery, which seeks to reserve its support.

At the heart of the issue is central for five months, pledged to keep the basic interest rate near zero for a considerable period after abandonment of the bond purchase program in October.

Another trend is the internal opposition and the text contained in the statement a month ago that the labour market is still experiencing slow clear, indicating that even if strong growth in jobs and further decline in unemployment would lead to tighten policy soon.

Said Charles blosr, Chairman of the Federal Reserve Bank of Philadelphia, told Reuters on the sidelines of the annual meeting of central bankers in Jackson Hole, Wyoming State American language statement detain us in the Fund and I think it is not a well. "

Blosr objected to the statement in the previous meeting of the Central keep interest low "for a considerable period" and said he would prefer "simple guidance based on" avoiding data frame or specific dates.
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