Numerous number of Federal Reserve executives have hinted for an interest rate hike in the upcoming month – however, few of the analysts/investors do not carry high hopes from Janet Yellen as her silence proves to be evident enough in this case.
Some believe, the central bank might opt for rate increase in July instead of June.
Those keenly observing Fed’s next move believe that Yellen is supportive with her colleagues in discourse panel; with reference to an interest rate hike here. But she prefers to be mysterious regarding Fed’s next meeting keeping in sight the annual Radcliffe Day celebration – In accord with ongoing speculations.
UPDATE: Fed chairwoman looks onto receive the *Radcliff Medal today. Moreover she’ll also be interviewed by **Greg Mankiw.
(*an annual award bestowed upon people who have had a transformative impact on society) (**one-time White House adviser of President George W Bush)
“We don’t think it’s the right venue. I would be surprised if she made comments.” – Barclays Investment Bank’s chief U.S. economist, Micheal Gapen
“Everyone is focused on that June 6 speech. She probably will wait until then to give a better indication of where the Fed is headed.” – Oxford Economics’ lead U.S. economist, Greg Daco
Also, patience might yield more clarity of U.S. economy in 2Q to Fed.
More time will also allow the central bank to gauge the health of the global economy and determine whether the U.K. is likely to stay a member of the European Union (source: Market Watch)
Dollar show mild imprints alongside bullish inflation, giving enough reason to Fed for an interest hike.
INSIGHT: U.S based good items saw a great price hike during the month of April this year – beating three years’ estimate of inflation at peak. Real or inflation-adjusted hourly wages plunged by 0.1% – These rates have risen slightly by 1.3% on the past annual scale.