The Atlanta Federal Reserve chief, Dennis Lockhart, announced on Friday that he still expects a rate hike before the end of 2015 since the economic growth in the US shows that the economy is ready for it. At the same time, Lockhart noted that the economic data coming out is contradictory and there is more uncertainty in comparison with a few weeks ago.
New York’s Fed chief, William Dudley, noted that it was a wise decision to delay the rate rise in September. He also announced that he thought it unwise to attach too much importance to the weak September labor force data. Weak developing markets are having a slowing effect on the US economy. Dudley did nothing however to deny that the Fed will put up the base rate in October if the economic data meets expectations.
The ECB’s head, Mario Draghi, highlighted that the Eurozone is showing signs of it weathering the current situation. Just as the Fed members stated, the Italian supposed that the slowing of economic growth in developing markets is creating new risks for the currency union. Inflation remains “super low” in the short-term and, according to expectance, will grow in 2016 and 2017.
Another Fed meeting of Lockhart, Evans and Brainard is unlikely to give the market any precise signals with regards to an interest rate decision.
Have a listen to what the bank of Canada’s Steven Poloz has to say today.