FRB Expected to Put off Rate Hike until December

Federal Reserve (FRB) officials, wary of raising short-term interest rates amid the uncertainty of the presidential election, are likely to stand pat at their November policy and remained focused on lifting rates in December, according to a recent Wall Street Journal article.

Officials, in public remarks and recent interviews, have clearly indicated that they expect to raise rates before the end of the year. However, with the unemployment rate holding steady around 5 percent and inflation below their 2 percent target, they aren’t in a rush, Wall Street Journal explains.

“There isn’t this tremendous urgency to act on monetary policy right now,” New York FRB President William Dudley told The Wall Street Journal in a recent interview. “It’s not like if we wait a meeting or don’t wait a meeting that it has huge consequences for the trajectory of the economy.” Mr. Dudley went on to explain that the FRB will raise interest rates this year, “subject to the economy continuing to evolve in line with my expectation.”

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