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Montevideo, September 18th 2018 - 23:31 UTC

IMF cautions Fed on conditions when it decides to increase interest rates

Tuesday, September 8th 2015 - 08:42 UTC
Full article 4 comments
“The Fed has not raised interest rates in such a long time, that it should really do it for good, not give it a try and then have to come back,” Lagarde said “The Fed has not raised interest rates in such a long time, that it should really do it for good, not give it a try and then have to come back,” Lagarde said
Fed Vice Chairman Stanley Fischer gave a mixed review of the latest US jobs report in a briefing to G20 officials, Luxembourg Minister Gramegna said Fed Vice Chairman Stanley Fischer gave a mixed review of the latest US jobs report in a briefing to G20 officials, Luxembourg Minister Gramegna said
Investors scaled back expectations for the US’s first rate increase since 2006 after a sell-off in China became a global stock-market rout. Investors scaled back expectations for the US’s first rate increase since 2006 after a sell-off in China became a global stock-market rout.

The US Federal Reserve must be certain that the job market and inflation are strong enough to justify raising interest rates, IMF managing director Christine Lagarde said after a G20 meeting focused on the pressure the increase might place on the global economy.

 “The Fed has not raised interest rates in such a long time, that it should really do it for good, not give it a try and then have to come back,” Lagarde said at a news conference in Ankara.

“The IMF thinks that it is better to make sure that data are absolutely confirmed, that there is no uncertainty, neither on the price stability front nor on the employment and unemployment front, before it actually makes that move,” she said.

Traders are torn on when the Fed will raise interest rates. The Fed could raise or hold rates when it meets on Sept. 16 and Sept. 17.

Investors scaled back expectations for the US’s first rate increase since 2006 after a sell-off in China became a global stock-market rout. The Fed’s key interest rate has been frozen since 2008.

Fed Vice Chairman Stanley Fischer gave a mixed review of the latest US jobs report in a briefing to G20 officials, Luxembourg Minister of Finance Pierre Gramegna said in a Bloomberg television interview.

“He told us that the numbers in the US are excellent because unemployment went down from 5.3% to 5.1%, which is an excellent number, but then he immediately cautioned that the number of 173,000 additional jobs was an August figure and that the August figure wasn’t very reliable,” Gramegna said.

Emerging-market officials at the G20 were divided on whether it is better for the Fed to tighten its policy this month or later on, saying that there were “both sentiments in the room,” he said.

The gain in payrolls, while less than forecast, followed advances in July and June that were stronger than previously reported, the US Department of Labor said on Friday. The jobless rate was the lowest since April 2008.

The strength of the economy and the jobs market has yet to lift inflation up to the Fed’s 2% target. Prices in the U.S. rose 0.3% in the 12 months through July, measured by the Fed’s preferred gauge. Inflation has lingered below the Fed’s target for more than three years.

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  • Brasileiro

    There is only one solution to the crisis of World. Prohibit entry of products other than South. And what is the South sells food and commodities. If the West does not want to buy, okay.

    And to complete the solution the South should not accept dollar or euro in their transactions. Even for investment.

    If the West wants to buy any our products, including niobium, they will have to pay in gold and through our own means of transfer.

    That's the solution. Their world is bankrupt since the 2008 crisis and will never recover. If we stay close to them the collapse of the dollar bubble will affect us.

    https://www.youtube.com/watch?v=n5VUmW2XzyM

    Sep 08th, 2015 - 11:56 am 0
  • The Voice

    Mmne Lagarde has obviously just spotted a Brazilian dick! I just spotted one too - posting @1 - Brassole.

    The more SA folk listen to ejuts like this, the closer their ultimate fate moves towards that of Venezuala.

    Offer ANY SA person a $ £or € and they will grab it with glee in preference to their own country's currency which makes nonsense of post @1.

    Sep 08th, 2015 - 02:03 pm 0
  • diefra

    Brasileiro : It s impossible to forbide international commercial except mercosur/ south america , OMC will punish with this practise, I know due to Argentina block overseas commercial products includes sometimes from Brasil , in this case because we haven t got enough U$S in our Central bank . Arg & Brasil should works together in order to improve and get more efficient in thiers manufacture and try to add value too , but we must to apply manufacturing polcies according USA and European standars , and cooperate together for example
    car s manufacturing. It Is impossible compite with China , so we try to increase our exportation and try to import those products that are unprofitable to produce here,

    About transaction s currency yes , it calls swaps, and allowed to import export products to / from differents countries with low cost . Peso/real Brasil or peso real /yuan .

    Sep 08th, 2015 - 02:25 pm 0
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