They say every top central banker faces a “test,” and this may be it for Federal Reserve Chair Janet Yellen.
As anticipation builds ahead of the U.S. Federal Open Market Committee’s Sept. 16-17 meeting, the decision on whether rates will go up or not rests squarely on incoming economic data, according to Fed Chair Janet Yellen.
Financial markets have all but shut the door to a Federal Reserve rate hike in September, following a rout in stocks, currencies and commodities this past week, but economy watchers are only now warming up to the idea — in public at least.
from Rahul Karunakar:
Almost a year after the European Central Bank announced new cash loans tied to actual lending to small and medium enterprises, data on Friday is expected to show euro zone private loans are picking up pace.
The U.S. Federal Reserve may find it even more tough to raise interest rates as the year wears on if dwindling expectations for growth are any guide.
The Bank of Canada will almost certainly hold policy steady on Wednesday but nearly half of the banks who do business directly with it predict at least one more rate cut this year.
Euro zone inflation has dipped again and some forecasters are hedging their bets on the policy response by saying the European Central Bank could either cut rates this week or sometime in the next two months.