Fed Stanley US rate hike prediction: Two more increases in 2017


Stanley Fisher discussed the possibility of two more Fed rate hike in 2017, forecasts was for three-quarter. Here is Fed Stanley US rate hike prediction.

30 March, AtoZForex – The Federal Reserve is likely to raise short-term interest rates twice more before the end of the year, a top U.S. central banker said Tuesday.

Fed Stanley US rate hike prediction

Two more rate climbs in 2017 seem “about right, that is my forecast,” said Fed Vice Chairman Stanley Fischer. He also said the Fed’s current outlook hasn’t changed much. In its March meeting, the Fed said it still expects its federal fund’s rate to be about 1.4 % at end of this year. Traders followed by the CME Group also seem to be pricing in two more rate climbs for the current year. While much of the Trump administration’s policies haven’t implemented yet, the expectations priced into the market.

Fisher’s outlook on Fed rate hike 

He said that the Fed is observing the Donald Trump administration very closely, as “they’ll certainly have an impact on what happens in the economy.” Fischer also said that ‘The White House’s economic footprint will “have an impact on our future actions,”’. Fischer said that “Some bills, when they’re presented, have some impact on the economy immediately. I think that was the case with just the early days of the administration and so the stock market goes up and so forth. So, you take those effects into account,” he said.

Fischer said, however, “you don’t have to put a huge weight on something that you don’t really know is going to happen. So, we take it into account somewhat.”

Fischer also said that “he has seen no great difficulties in emerging and developing countries as the Fed has started raising interest rates.” The dollar has declined a bit, which helps debtors in those regions, he noted. He already considered extending his term as vice chairman of the Federal Reserve. However, that he hasn’t made a decision and that it’s not something he feels the need to think about very strongly at the moment.

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