(Reuters) – The Federal Reserve’s vow to keep interest rates near zero for a “considerable time” is likely to remain in place for now, with the U.S. central bank set to take a slow and steady approach to its first rate rise in a decade.The pledge will be up for debate again when policymakers meet next week, with a strong jobs report bolstering the case of officials who want to remove it.
But others feel it still has some shelf life, and even when officials drop it, they will almost certainly insert a placeholder to assure financial markets any rate hike is still a ways off.
Dec 5 (Reuters) – The Federal Reserve’s first round of
interest-rate increases in a decade could start as soon as July,
traders were betting on Friday, after a jump in jobs growth last
month boosted confidence in the staying power of the U.S.
U.S. short-term interest-rate futures contracts plunged as
traders priced in higher rates next year on the strength of a
government report showing employers added 321,000 jobs last
month, the most in nearly three years.