Fed keeps the door open for rate hike in September – Reuters Germany

       

Washington (Reuters) – The US Federal Reserve (Fed) prepares the ground for the first interest rate increase in nearly a decade – possibly as early as September.

       

The monetary authorities to Fed chief Janet Yellen decided on Wednesday night though, to leave the key rate currently at a record low of zero to 0.25 percent. But you want to think about raising, when the situation on the labor market a little further improved. The monetary authorities refer to recent advances and a “solid job growth.” The tenor was slightly more optimistic than in the previous month. Concrete evidence that the interest is as expected by many experts are already rising in the late summer, the Fed but not delivered.

       

On Wall Street, investors’ reactions fell on the Fed’s decision from steamed. Dow Jones and S & P 500 built after the Fed statement their profits from something. The euro rose briefly, were the gains but then again and fell below the mark of 1.10 dollars.

       

Since the Fed has used the markets and the economy for many years to the cheap central bank money, a shift to a tighter price as tricky maneuvers applies – particularly in the euro zone and in Japan on a farewell from the zero interest probably still long is unthinkable. [ID: nL5N1012O2] Recently attracted the US monetary authorities monetary policy on in June 2006.

       

“The Fed is moving step by step to an increase to,” says economist Brian Jacobsen from the financial services firm Wells Fargo Funds. She holds the interest rate since the peak of the global financial crisis in late 2008 is close to zero. The US economy was indeed contracted slightly at the beginning, however, is likely to have caught again in the spring.

        
       

DATA MANAGEMENT CRUCIAL

       

For the upcoming Thursday figures for the gross domestic product in the second quarter, experts expect an annualized projected growth of 2.6 percent. The labor market is expected to have further approached in July of programs proposed by the Fed full employment. Experts expect a further increase of 218,000 points. “If these and other data turn out as expected or even better, an increase in September is probably in the bag,” said Fed watchers Bernd Weidensteiner of Commerzbank.

       However

The monetary authorities want to be reasonably sure that inflation to the objective pursued by two percentage approximates again. Recently, prices rose slightly. [ID: nZON08I301] argues against a rapid rise in interest rates that the markets in China last rustled into the depths and were stabilized only with difficulty from Beijing. [ID: nL5N1092CT] The turbulence were investors worldwide into turmoil offset , A US rate hike could hit the struggling with an economic slowdown Asian economic power hard, if capital flows on the hunt for returns and security from there towards the USA. Whether the Fed takes the calculus these problems overseas, is likely to be familiar with the publication of the minutes of the rate-setting meeting, which remain under wraps until 19 August.

       
          © Thomson Reuters 2015 All rights reserved.