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Officials of FRS: a key rate will not be increased for now

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Officials of FRS: a key rate will not be increased for now

Officials of FRS: a key rate will not be increased for now
July 15
12:30 2016

On Thursday three officials of the Federal Reserve System of the USA declared that they prefer not to hurry with the increase of a key rate in the country after it decided to leave the EU. The decision was made despite the fact that there is some evidence of the US economy approaching to the full employment.

Before the FRC meeting on 26-27 July, the main group of the officials is going to keep the rate unchanged. Probably, the rate will remain unchanged for several months. In June most of the representatives of the Central Bank talked about at least two increases before the end of this year. “After Brexit people want to wait and see what will happen next and it suits me”, – said the head of the Federal Reserve Bank of St. Louis James Bullard. “There is no necessity to hurry up”, – he added.

The head of the FRB of Dallas Robert Kaplan urged again to “patient and gradual” approach to the increase of the rate. Dennis Lockhart, the President of the Federal Reserve Bank of Atlanta, said that he wanted to show “caution and patience”. The decision of the UK to leave the EU on 23 June was made because of the investors’ escape into risk-free assets and worsening of the global economic forecast. According to the officials, it can take more than one year to realize all the consequences of Brexit.

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