U.S. Federal Reserve Chair Janet Yellen want to stick to her plan to raise the interest rate for the first time in a decade.Cristina Cantor (Author) Published Date : Feb 23, 2015 01:59 IST
Market experts are expecting U.S. Federal Reserve Chair Janet Yellen to stick to her plan and raise the interest rate at the end of the years for a first time in a decade.
According to market experts U.S. core CPI inflation data is due next week. They are suggesting, as plummeting oil prices crammed the global inflation rate and Feds want to use that to counterweight for their interest hike in June.
As it was reported earlier, Fed Chair Yellen is facing the congress next week to give her outlook on the economy. It was also reported in the Central banks last meeting minutes from January that, many policy makers wanted to keep the borrowing cost lower for a longer period of time. But economists are suggesting that the agreement between EU finance ministers and Greek government to extend their bailout date and keep aid flowing for the shattered economy in Greece may change the approach.
According to market experts purchasing manager s data for February for the Eurozone is in the right direction. But it was also suggested that, yet Europe is struggling to generate meaningful growth rate. As a result Europe is not generating enough resilient hiring which will push up wage inflation.
In the world market, China is struggling with poor property market and debt projection. Their Purchasing managers' index due on Wednesday and the market experts are suggesting that, it will show the persistence inactivity in the manufacturing industry.
World Bank also showing concern over the recent released data from Latin American countries. It was said Brazil, one of the largest economy in Latin America is struggling and had very little to offer to the world s economy.
It was earlier reported that, in the January meeting European central bank want to launch a bond purchasing program worth of 60 billion. According to leading economists these may be late move by the European Central Bank then to its peers but it came at the right time.
U.S. Federal Reserve Chair Janet Yellen want to stick to her plan to raise the interest rate for the first time in a decade.