The turbulence coursing through markets has raised speculation that Fed officials might decide to
slow their pace of rate increases out of fear of upsetting the markets and possibly harming the economy.
The one thing that could
slow the pace of rate increases would be to tame housing costs through an increased supply of new homes.
Not exact matches
With unemployment falling steadily through the year, there has been less justification for crisis - era policy, and a sense among policymakers that they could balance the higher
rates sought by «hawks» with a
slow pace of subsequent
increases.
«Beyond the near - term, a return to a more cautious communication strategy and
pace of interest
rate increases is expected in light
of the headwinds facing Canada,» including
slow inflation growth, Toronto - Dominion Bank Senior Economist Brian DePratto said in a research note.
By that I mean the Fed will keep raising
rates, but if things go bad, it will definitely
slow the
pace of increases.
Although their growth
rates have
slowed, their share
of GDP has continued to
increase and the importance
of these countries to the
pace of global growth has also
increased.
We expect the Fed to continue a
slow, patient
pace of short - term
rate increases, not because the economy is overheating, but in order to get
rates back to more normal levels.
Local government wages have also
increased at a
slower pace than the overall average (industrial aggregate) since 2000: by an annual average
rate of 2.5 % compared to 2.9 % for the overall average.
A major contributor to the weakening has been a drop - off in the
pace of household spending, as wages growth and the
rate of increase in housing prices have both
slowed.
Such pollution has already doubled just since 1970 and the
rates of pollution have been
increasing by roughly 1 billion metric tons per year in recent years, a
pace that must
slow and stop soon.
Unfortunately, although more teachers
of color are being recruited across the nation, the
pace of increase is
slow and attrition
rates are high, leaving growing gaps between the demand for such teachers and the supply.
E-book sales continue to soar, although at a slight
slower pace than in the first two months
of the year (for January and February, sales
increased at a
rate of 169 % while for March it was a «relatively modest»
increase of 145.7 %).
The
pace of inflation
slowed somewhat in July due to easing
of gas price
increases, allowing the Bank
of Canada to keep interest
rates at their rock - bottom levels.
If the Fed opts to broadcast a
slow and small
pace of monetary policy tightening (one or two
rate increases), Marks expects the market will digest this well.
Recently, there have been concerns that softer inflation might force the Fed to
slow down the
pace of planned interest
rate increases.
Simply put, more housing supply means a lower inflation
rate, and potentially a
slower pace of interest
rate increases by the Fed.»
Rather than the
slow pace of rate hikes so far that has kept interest income at a low level,
increase rates by a half or three - quarters
of a percentage point in one shot.
We expect multifamily starts to continue to
increase but at a
slower pace than the 200 + percent growth
rate in the fourth quarter as starts move steadily toward the annual
pace of 350 thousand that we consider sustainable.