(Reuters) – Strong growth in the number of U.S. jobs last month bolstered the case for a December interest rate hike by the Federal Reserve, where officials had already begun to worry the economy might eventually overheat without higher borrowing costs.
Employers outside of the farming sector added 271,000 jobs in October, the most in 10 months, and the jobless rate fell to a 7-1/2-year low of 5.0 percent, the Labor Department said on Friday.
WASHINGTON, Nov 6 (Reuters) – Federal Reserve Governor Lael
Brainard on Friday warned that raising U.S. interest rates could
hit global growth enough to knock the U.S. economy off its
current growth path.
This could leave the U.S. economy particularly vulnerable
because the central bank’s benchmark interest rate is already
close to zero.
Nov 6 (Reuters) – Two U.S. central bank policymakers on
Friday hailed surprisingly strong monthly jobs figures, which
have cemented the view that the Federal Reserve is likely to
raise rates in December.
Nonfarm payrolls surged 271,000 in October, the largest rise
since December 2014.
Nov 6 (Reuters) – Chicago Federal Reserve Bank President
Charles Evans said on Friday that the latest U.S. nonfarm
payrolls numbers are “very good” and that he will keep an open
mind on a possible rate hike at the Fed’s next meeting in
“We’ve indicated that conditions look like they could be
right for an increase,” Evans said in an interview with CNBC.
“The real side of the economy is looking a lot better.”
WASHINGTON (Reuters) – The Federal Reserve may quickly meet its 2 percent inflation target once the price of oil stabilizes and the dollar stops rising, Fed Vice Chairman Stanley Fischer said on Wednesday.
“We’re not that far from the 2 percent target, when the price of oil stops falling and when the dollar stops appreciating,” Fischer said at a meeting of the National Economists Club.
WASHINGTON (Reuters) – The U.S. Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play.
Investors had expected the Fed to remain pat on rates, but the overt reference to December came as a surprise.
WASHINGTON (Reuters) – The Federal Reserve is expected to keep interest rates unchanged on Wednesday and may struggle to convince skeptical investors it can tighten monetary policy before the end of the year in the face of U.S. and global economic headwinds.
The world’s most powerful central bank hasn’t hiked rates in about a decade and markets see virtually no chance it will do so at the end of this week’s two-day policy meeting. The Fed is scheduled to announce its rate decision at 2 p.m. ET (1800 GMT).
WASHINGTON (Reuters) – U.S. Treasury Secretary Jack Lew said
on Wednesday he is worried that brinkmanship in Congress on
raising the nation’s debt limit could cause an “accident” as the
United States edges closer toward default.
Speaking at a policy conference in Washington, Lew also said
the risk of an unforeseen circumstance would rise if Congress
did not act in time, adding that the debt limit issue should not
be used as a weapon in negotiations on a separate budget deal.
WASHINGTON, Oct 19 (Reuters) – The United States on Monday
called on China to allow its currency to appreciate further as a
crucial support to the world’s second biggest economy in
rebalancing its economy.
In the Treasury’s semi-annual report on economic and
currency policies of major trade partners, the United States
also said that the yuan, officially known as the renminbi,
remains below its “appropriate medium-term valuation.”
(Reuters) – Federal Reserve Governor Daniel Tarullo on Tuesday said the Fed should not hike interest rates this year, in comments that point to sharp divisions within the U.S. central bank over America’s readiness for higher rates.
Tarullo, who rarely comments in public on monetary policy, is the second Fed governor this week to urge caution on the timing of rate hikes.