Although the 'dot plot' on December FOMC meeting indicated Fed rate hikes four times again in 2016, but the view of the high officials of the Federal Reserve is still diverse. Comments from the new Dallas Fed President Robert Kaplan, and Atlanta Fed President Dennis Lockhart, shows the lack of kompakan.
The Federal Reserve raised interest rates for the first time in almost a decade in December, ending a period of super-low interest rate policy that were previously carried out in response to the financial crisis of 2007/2009. Investors are now focusing on when the next rate hike is done, with many economists predicting that steps will be taken by the Fed in March. Essentially the median forecast in December FOMC indicating there will be four Fed rate hikes in 2016.
However, Robert Kaplan and Dennis Lockhart different opinions about whether there is enough data to support a rate hike in March it.
Concerns over an economic slowdown in China in August 2015 has forced the Fed to postpone interest rate hikes from September to December. Earlier this year, the global financial market was again shaken by ambrolnya Chinese stock market, the decline Yuan, and the massive intervention of the Chinese authorities. Considering this, Kaplan that since September replaces Richard W. Fisher as president of the Dallas Fed, assessing the economic conditions need to be evaluated again.
He said, "We are experiencing it (sort of) in August and September, we wait, we monitor, we let events occur (without raising interest rates), which (it) is the right way to handle it, and we finally see that the basic economic conditions remains intact and smooth ... There is no substitute for 'time' in assessing economic data revealed. "
Furthermore, Kaplan was not sure there would be enough economic data before the next Fed policy meeting late this January to justify a rate hike at the time, but "between now and March, I think there will be (the data that support)."
Kaplan opinion is somewhat different from the views of the Atlanta Fed President delivered on different occasions. According to Lockhart, until March could so there would not be enough data to support a rate hike.
Lockhart is a member of the FOMC in 2015, but both he and Kaplan, both of them are not included in the FOMC voting members of the FOMC Policy 2016. The voting members rotate every year to make the shift members dovish and hawkish. 2015 dovish FOMC members, one of whom Lockhart, was replaced by a new line that tends hawkish, such as St. Louis Fed president James Bullard and Kansas City Fed President Esther George.
The Federal Reserve raised interest rates for the first time in almost a decade in December, ending a period of super-low interest rate policy that were previously carried out in response to the financial crisis of 2007/2009. Investors are now focusing on when the next rate hike is done, with many economists predicting that steps will be taken by the Fed in March. Essentially the median forecast in December FOMC indicating there will be four Fed rate hikes in 2016.
However, Robert Kaplan and Dennis Lockhart different opinions about whether there is enough data to support a rate hike in March it.
Concerns over an economic slowdown in China in August 2015 has forced the Fed to postpone interest rate hikes from September to December. Earlier this year, the global financial market was again shaken by ambrolnya Chinese stock market, the decline Yuan, and the massive intervention of the Chinese authorities. Considering this, Kaplan that since September replaces Richard W. Fisher as president of the Dallas Fed, assessing the economic conditions need to be evaluated again.
He said, "We are experiencing it (sort of) in August and September, we wait, we monitor, we let events occur (without raising interest rates), which (it) is the right way to handle it, and we finally see that the basic economic conditions remains intact and smooth ... There is no substitute for 'time' in assessing economic data revealed. "
Furthermore, Kaplan was not sure there would be enough economic data before the next Fed policy meeting late this January to justify a rate hike at the time, but "between now and March, I think there will be (the data that support)."
Kaplan opinion is somewhat different from the views of the Atlanta Fed President delivered on different occasions. According to Lockhart, until March could so there would not be enough data to support a rate hike.
Lockhart is a member of the FOMC in 2015, but both he and Kaplan, both of them are not included in the FOMC voting members of the FOMC Policy 2016. The voting members rotate every year to make the shift members dovish and hawkish. 2015 dovish FOMC members, one of whom Lockhart, was replaced by a new line that tends hawkish, such as St. Louis Fed president James Bullard and Kansas City Fed President Esther George.
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