Officials of the Federal Reserves will have a meeting on Sept. 16-17, and it seems that the interest rate hike will be one of the topics on the table.
International Monetary Fund warns the Fed to take caution in imposing a rate hike.
In an article in MercoPress, IMF managing director Christine Lagarde said in a news conference "The Fed has not raised interest rates in such a long time, that it should really do it for good, not give it a try and then have to come back," She also added that the Fed should be pretty confident that the facts they have are true and correct, "The IMF thinks that it is better to make sure that data are absolutely confirmed, that there is no uncertainty, neither on the price stability front nor on the employment and unemployment front, before it actually makes that move," she added.
According to the WeatherSpace, the unemployment rate of United States in August dropped to 5.1 percent, the lowest since April 2008.
"Over the past year or so, reports of difficulty finding and hiring qualified workers have become notably more widespread and persistent", he said, referring to reports in his region. New York Fed president William Dudley said in late August that the market's recent volatility made a September rate hike "less compelling".
Wall Street Journal has reported that Minneapolis Fed President Narayana Kocherlakota commented in his speech that "there has been a significant decline in the long-run neutral real interest rate in the United States over the past few years." which means that "the Fed won't be able to raise rates as high as it has in the past, and thus, when it lowers them at some point in the future, it will have less room to maneuver before hitting something like the near zero rates that currently prevail."
