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Dr. Ana Armstrong Benedicte Gravrand, Opalesque Geneva: The US quantitative easing, started in late 2008 and ended in October 2014, is over and the US Federal Reserve is expected to hike interest rates this year. Opinions diverge as to whether this should be done sooner or later.
Trader speculation that the Fed would delay raising interest rates set the stage for new, albeit short-lived, highs in the stock market during the month of March, commented Alex Rabinovich, hedge fund manager and fouder of Chessica Asset Management. Indeed, many in the financial markets worry that once interest rates start to rise, it will mark the end of easy money.
Apparently, following New York Fed president William Dudley’s comment this week, most economists now believe the Fed will continue to keep short-term rates near zero (the current American interest rate FED (base rate) is 0.250 %) until convinced the economy is on firm ground, and wait at least until September instead of moving as early as June. Janet Yellen, the Federal Reserve’s Chairwoman, has said the pace of rate increases is likely to be gradual and cautious.
American interest rate FED - long-term graph
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