On Friday the rupee appreciated to a one-month high and bond yields fell to an over three-month low after the US Fed decided to keep interest rates unchanged in its meeting.
“Such exceptionally low real interest rates are unlikely to be appropriate for an economy with persistently strong consumption growth and tightening labor markets”, Lacker said in a statement.
“We believe at some point in the near future the rate hike cycle needs to begin in order for the Fed to retain its credibility with the markets and to remind investors that rates can not stay at zero forever”.
Asian stocks mostly rose Friday, perked by relief that the U.S. Federal Reserve held off on raising interest rates for the time being, but European markets faltered as some investors interpreted the Fed decision as a sign of economic weakness.
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term”, the Fed said in its statement.
The buck had traded in a narrow range against most of its rivals during the past week as investors waited for the Fed’s decision, even as many expected the central bank to hold off Thursday, said Mark McCormick, global FX strategist based in New York. However, following the...
White House spokesman Josh Earnest made the announcement at his daily press conference one day after Secretary of State John Kerry said that the country was committed to taking in more Syrian refugees to respond to the immigration crisis that was affecting Europe, reports Efe.
Higher rates could dent demand for non-interest paying bullion, while boosting the dollar. Prices jumped as much as 1.3 per cent to $US1,133.93, the highest since September 3.
Some Republican presidential candidates joined the Democrats in condemning Trump’s response, while at least one said the fault lied more with the man in the audience.