«Overall, a report showing strong job growth, a falling unemployment rate, and steady wage gains should be mildly hawkish for markets and supportive of continued but
gradual Fed rate hikes, keeping a June hike well priced above 90 per cent,» TD said.
Not exact matches
The Federal Reserve, long hesitant to raise U.S. interest
rates, increasingly faces risks if it waits too much longer so a
gradual policy tightening is likely appropriate, a top
Fed official said on Friday.
Critics have worried that the
Fed has missed opportunities to normalize policy, but Yellen said «the risk of falling behind the curve in the near future appears limited, and
gradual increases in the federal funds
rate will likely be sufficient to get to a neutral policy stance over the next few years.»
The Federal Reserve will stick to its plan for «steady,
gradual» interest -
rate increases, a
Fed policymaker said.
«The
Fed is signaling it is keeping to the
gradual path and not hiking
rates at faster pace (at least for now),» Alvin Liew, senior economist for UOB in Singapore, said in a note.
Along with buying up bonds, the
Fed kept its benchmark interest
rate anchored near zero until December 2015, when it began a
gradual process of hikes.
The rise in the annual inflation measures reported by the Commerce Department on Monday was anticipated by economists and
Fed officials and is not expected to alter the U.S. central bank's
gradual pace of interest
rate increases.
Fed officials have variously described the subsequent pace of
rate hikes as «
gradual,» «shallow,» «slow,» «halting» and even «crawling,» noted economists at Goldman Sachs.
San Francisco
Fed President John Williams, said the yield - curve inversion was a powerful recession indicator but didn't see signs of it happening soon, and said he backed a
gradual rate increase path.
Although the
Fed is likely to take a
gradual approach to raising short - term
rates, long - term interest
rates — including 10 - year Treasury notes, which serve as an index for government student loans — are already on their way up.
The exit would be preceded by a
gradual decrease in the size of asset purchases (i.e., a slowing in the amount of extra easing), followed by the end of asset purchases, a
gradual withdrawal of excess liquidity from the system, measured increases in the federal funds
rate and, eventually, a normalization of the
Fed's balance sheet.
In the policy statement the
Fed issued after the January meeting, the central bank outlined its approach to raising
rates, saying it «expects that economic conditions will evolve in a manner that will warrant further
gradual increases in the federal funds
rate.»
So far, however,
Fed officials have treated the stronger economic news as a reason to carry out their plans for
gradual rate hikes, rather than as a reason to start raising
rates more quickly.
Despite the rise in inflation,
Fed policymakers still expect gradual increases in the fed funds ra
Fed policymakers still expect
gradual increases in the
fed funds ra
fed funds
rate.
While it decided not to, the
Fed did say it expected «further
gradual»
rate increases would be justified — and there's broad consensus that it will raise
rates (which can affect the amount banks charge borrowers, as well as interest paid on bonds) at least three times this year.
The rise in the annual inflation gauges reported by the Commerce Department was anticipated by economists and
Fed officials and is not expected to alter the US central bank's
gradual pace of interest
rate increases.
Yellen was able to oversee a
gradual rate policy because inflation posed no threat: It ran below even the
Fed's 2 percent annual target throughout her tenure.
April's jobs report makes a case that the
Fed's initial policy
rate hike should begin September, with a
gradual pace of movement from there.
The
Fed said in a statement after its latest policy meeting that it expects «further
gradual increases» in
rates and says it's moving close to achieving its 2 percent target for annual inflation.
These principles lay out a roadmap about how exit is likely to occur: First, the end of reinvestment of maturing securities; second, an increase in short - term interest
rates, and, third, the
gradual sale of mortgage backed securities to shrink the magnitude of excess reserves in the system and ultimately to restore the
Fed's balance sheet to a predominately all - Treasury portfolio.
«The statement carried only modest changes in wording, but they were meaningful nonetheless, highlighting that the
Fed is optimistic on the outlook and intent on continuing to raise
rates at a
gradual pace,» said Westpac analyst Elliot Clarke.
Some
Fed policymakers have been conveying the impression that uncertainties about growth momentum in the United States mean that
rate rises will be shallow and
gradual, especially as inflation is not yet a concern.
While some market observers believe that even a modest
rate rise will disrupt markets, the
Fed has made it clear that
rate increases will be measured and
gradual, a pace likely well - anticipated by markets at this stage.
Sean Becketti, the chief economist for Freddie Mac, discussed this indirect relationship in a recent statement: «We take the
Fed at its word that monetary tightening in 2016 will be
gradual, and we expect only a modest increase in longer - term
rates.
Nonetheless, while the
Fed is facing an extremely delicate task — and the job of effectively communicating its intentions will be even more delicate — it is still our belief that the US economy remains sufficiently strong to be able to bear a
gradual increase in short - term
rates in the coming months.
Indeed, I believe the
Fed will raise
rates in a slow manner that doesn't excessively unsettle the economy or markets, with the
gradual nature of the tightening cycle allowing markets to absorb the increases with relative ease.
This will be a
gradual process, according to the
Fed, and while it could increase long - term
rates, it also could be partially offset by other factors.
At first, the market took the
Fed's promise of
gradual rate increases as a positive but later deemed that the
Fed was still hawkish.
But since we expect the
Fed to continue its dovish stance and
rate rises to be
gradual, we wouldn't expect to see big downward spikes in preferred prices.
The pace of
Fed rate increases is likely to be
gradual, meaning
rates should stay low from a historical perspective for the foreseeable future.
As pointed out in a new BlackRock Bulletin on «The
Fed's New Path,» the
Fed said it expects
rates to stay subdued and the hiking cycle to be
gradual.
In his first press conference following the FOMC meeting, the
Fed chairman said that
gradual adjustments in interest
rates will lead to further job creation and a strong labour market with moderate expansion in economic activity.
Speaking at the Economic Club of New York in late March,
Fed Chair Janet Yellen said that she expects «
gradual»
rate rises in the medium term, but emphasized that the FOMC's decisions would depend on incoming data.
Yellen conceded that the
Fed still likely will need to implement «
gradual rate hikes» over «the next few years,» but markets took her statement to mean that the central bank position could be more dovish than anticipated.
The
Fed has been cautious in its strategy of increasing
rates and we expect its approach of
gradual increases to continue in 2017.
As Jerome Powell, Trump's hand - picked new
Fed chairman, said at a news conference after the central bank's most recent meeting in March, «We're trying to take the middle ground, and the committee continues to believe that the middle ground consists of further
gradual increases in the federal - funds
rate.»
Unlike certain «bond market proxies» — companies like consumer staples, utilities and REITs — they may be less affected by the
gradual rate hikes the
Fed seems to have in mind.
The
Fed's response has been
gradual interest -
rate increases.
Mr. Powell, like his predecessor, Janet L. Yellen, cast that
gradual series of increases as a carefully planned strategy to ensure that the
Fed will not need to raise
rates abruptly in the event of a steep rise in inflation.
Since the
Fed began raising
rates in December 2015, the pace has been modest and
gradual: One quarter - point
rate increase in 2015, one in 2016, three in 2017 and one so far this year.
The
Fed has signaled a very gradual monetary tightening ahead: The median FOMC expectation envisions four 25 - basis - point (bp) hikes in 2016, and a fed funds rate rising to 3.3 % by end - 20
Fed has signaled a very
gradual monetary tightening ahead: The median FOMC expectation envisions four 25 - basis - point (bp) hikes in 2016, and a
fed funds rate rising to 3.3 % by end - 20
fed funds
rate rising to 3.3 % by end - 2018.
The
Fed raised policy
rate levels by a quarter point at its mid-March meeting, and the U.S. economy has achieved sufficient levels of unemployment and inflation to encourage further
gradual policy tightening this year and into next.
The pace of
Fed rate increases is likely to be
gradual, meaning
rates should stay low from a historical perspective for the foreseeable future.
As the economy recovers from the 2008 - 2009 crash, strengthening jobs numbers and GDP has convinced
Fed Chairwoman Janet Yellen to commit to
gradual increases in the interest
rates each year.
But since we expect the
Fed to continue its dovish stance and
rate rises to be
gradual, we wouldn't expect to see big downward spikes in preferred prices.
Unlike certain «bond market proxies» — companies like consumer staples, utilities and REITs — they may be less affected by the
gradual rate hikes the
Fed seems to have in mind.
I've seen that the
Fed may hike
rates next month, which could start a
gradual push upward of all
rates, including mortgage.
This could change if interest
rates continue to rise, but the
Fed seems committed to a
gradual approach that will keep
rates relatively low for some time.2
These conditions support our call that the
Fed will continue gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the fed funds rate for the third time this year.&raq
Fed will continue
gradual monetary policy normalization, announce its balance sheet tapering policy in September, and wait until December for additional data, especially on inflation, before raising the
fed funds rate for the third time this year.&raq
fed funds
rate for the third time this year.»
«We expect the first
rate hike of the year at the March
Fed meeting, a move fully priced in by the market, with continued
gradual monetary policy normalization under the new leadership of
Fed Chair Jerome Powell,» Duncan says.