1. US Federal Reserve Bank’s Jerome Powell says interest rates could rise ‘fairly soon’

US Federal Reserve Bank’s Jerome Powell says interest rates could rise ‘fairly soon’

A US rate hike may come "fairly soon" if data confirm the economy is continuing to grow and labor markets are still tightening, Federal Reserve Governor Jerome Powell...

By: | Washington | Published: May 27, 2016 1:05 AM
U.S. Federal Reserve Bank, U.S. Federal Reserve interest rate, U.S. Federal Reserve system Jerome Powell said the economy remains on a “solid footing” and that he views ongoing job growth and evidence of rising wages as being more important than recent weakness in consumer spending and business investment. (Reuters)

A US rate hike may come “fairly soon” if data confirm the economy is continuing to grow and labor markets are still tightening, Federal Reserve Governor Jerome Powell said on Thursday in remarks that may help tee up higher rates as soon as mid-June.

Jerome Powell said the economy remains on a “solid footing” and that he views ongoing job growth and evidence of rising wages as being more important than recent weakness in consumer spending and business investment.

“There are good reasons to think that underlying growth is stronger than these recent readings suggest,” Powell said in prepared remarks to be delivered at the Peterson Institute for International Economics in Washington. “Labor market data generally provide a better real-time signal of the underlying pace of economic activity.”

“All told, labor market indicators show an economy on a solid footing,” Powell said, adding that the U.S. central bank was on track to meet its full employment and 2 percent inflation goals. “If incoming data support these expectations, I would see it as appropriate to continue to gradually raise the federal funds rate.”

Powell spoke a day ahead of a scheduled public appearance by Fed Chair Janet Yellen. Yellen’s remarks on Friday as well as those in a speech in early June will be closely parsed for clues about the Fed’s monetary policy stance going into its June 14-15 policy meeting.

After increasing rates in December for the first time in a decade, the Fed has watched tentatively as global markets seesawed and weak growth in China, Japan and Europe threatened to pull the U.S. recovery off track.

But the Fed now regards those risks as “waning,” and the minutes from its April policy meeting showed several policymakers keying in on a possible June rate increase. Four Fed regional bank presidents have now urged a rate increase.

That has shifted market expectations that had been discounting higher rates until later in the year, though analysts remain mixed on whether the Fed will move in June or wait until its July meeting.

Complicating the horizon are Britain’s referendum next month on whether to leave the European Union and the U.S. election campaign.

Powell said he thought international risks were on the decline, though he cited the June 23 “Brexit” vote, the refugee crisis in Europe, and economic troubles in China and Brazil as continuing concerns.

  1. D
    Derek Speed
    May 27, 2016 at 10:28 am
    Wait until you see it, , , , , ,"Truth is Singular, the pursuit of truth is the search for an absolution, that remains infinite." If it does nothing but consume and reproduce, what is it? A virus, a bacteria, and schizophrenic people, that think they're intelligent. Let's review the facts at hand, and then explain them throughout the "TIME", you'll spend reading it.A brief description of TIME, as it pertains to my mind, and this thesis. Oldest known cave paintings made by man, scientifically radio and carbon dated to approximately 40 000 years ago. The same science concludes, that there were less than half a billion people on the earth at that "TIME". From the "TIME" of those cave paintings, until the year 1960, is how long it took human potion to grow from less than half a billion, to 3 billion, a potion growth of just 2.5 billion, over a "TIME"span of "40 000 years", let me say that again, a potion growth of 2.5 billion, over a "TIMEspan of "40 000 years" do you understand this number and "TIME"frame? However, from the year 1960, to this the year 2016, human potion grew by almost double that, a potion growth of 4.4 billion, over a "TIME"span of just "56 years". Most people don't understand these numbers, and how they apply to them, so. Human potion growth in the last 24 hours, 200 000, that means, you the human race birth and build a city the size of Rochester New York, for EVERY 24 hour "TIME"span. Human potion growth in the year 2015, "82 million", that means you the human race birth and build a country the size of Germany, for every ONE year of "TIME".7.412 Billion (current human potion), if it grows at 1% per year, it doubles in 70 years, if it grows at 2% per year, it doubles in 35 years, if it grows at 3% per year, it doubles in 24 years. Anything that grows exponentially, grows in a predictable amount of TIME. "56 years" a potion growth of 4.4 billion, talk about "Economic Growth". Speaking of Economy, and Economic Growth, how does that all work, you figure? Supply and demand? Your country has what's known as a GDP statistic, or (Gross Domestic Products) it's a measure of your "Economic Growth", and the "Stability" of your "Economy". So, how do you continuously grow the demand for your country's Gross Domestic Products? By exponentially increasing the potion of other countries, to create the demand for it, that's how. Therein lies the reason you birth and build a city the size of Rochester New York, for every 24 hour TIMEspan. If you don't, your "Economy" will fail. So, it would appear, that you have to grow your potions exponentially, to maintain your quality and standard of life, or your economic stability. According to my math, and your Government, United Nations and IMF (International Monetary Fund), and the Federal Reserve Bank of the United States, you the human race, need at least 2.3% economic growth, to sustain your Global Economy. The Global Economy, isn't just your jobs, it's your Education System, your Health Care System, your Social Security System, your Justice System, your Army, Navy, Airforce, Marines, and the two most important things, your 19 trillion dollar debt, (plus interest), and your PENSION. So, if you grow your potions exponentially to sustain all these things, you end up with a war in Syria, that is a masquerade for a very real, very serious quagmire, that quagmire being, Economic Growth, is the leading cause of Global Warming, and Climate Change. Human potion, is now growing faster than any virus or bacteria known to man, to sustain your economy, or, your quality and standard of life, it would be equivalent to you inhaling a single Ebola Virus, and that virus consumes and reproduces so fast, you're dead in 55 seconds. Do you actually believe, the "Refugee Crisis" in Europe, is a result of a war in Syria? Considering 40% of the Refugees don't come from Syria,,,, well, you figure it out. 7.412 billion, with a need to sustain 2.3% growth, equals 15 billion people on earth, by the year 2050. Or, human potion will exceed the planet's ability to sustain it, in the next 24-35 years, if you continue Economic Growth. It's a quagmire, wrapped up in an ironic paradox of Karma, and there is nothing you can do to stop it, as, you're out of TIME. ANYTHING, that grows EXPONENTIALLY, is UNSUSTAINABLE. Global Economic Failure, is IMMINENT.
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    1. D
      Derek Speed
      May 27, 2016 at 10:28 am
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