Yellen’s Scope For Summer Rate Hike Widens

Yellen’s Scope For Summer Rate Hike Widens

The European Central Bank President stated that he is going to hold off until they see how stimulus measures play out, however, this delay may also present an opportunity for the Federal Reserve to raise rates in the coming months.

“U.S. policymakers expect to raise interest rates twice a year.” “Inflation is still too low, held down by lower energy prices and a strong dollar, and has been below the Fed’s preferred gauge of price pressures since 2012.” Wages are also subdued which suggest that there’s still slack in the labor market, despite a 5% unemployment rate in March.