The public attention is focused on the meeting of the National Association for Business Economics of the USA (NABE). It takes place in Cleveland; one of the most significant speakers is certainly the head of the Federal Reserve, Janet Yellen. She said that she was not going to wait for the inflation rate to return to the target 2% for initiating the monetary policy. The words of the Fed’s head mean that it is very likely that at the December meeting the value of the base interest rate will be revised upwards.
Raphael Bostic, CEO of the Federal Reserve Bank in Atlanta, also acknowledged plans to raise the interest rate at the upcoming meeting to be pertinent and timely.
Ms. Yellen said that the Federal Reserve System should avoid too mild tightening of the monetary policy. In her opinion, the best tactic in times of the inflationary uncertainty is a smooth increase in interest rates.
John Williams , Chief Executive Officer of the Federal Reserve Bank of San Francisco, also spoke in this regard. Mr. Williams noted that the cooperation of countries with regard to the national inflationary policy would lead to the general benefit.
After the public statements of Ms. Yellen, the analytical agency Bloomberg estimated the chances of the rate increase in December as 70 percent.
It was decided not to change the interest rate at the last meeting of the Federal Reserve System.
On these public statements, traders should expect the strengthening of the national currency of the United States.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade