Janet Yellen, like most of her colleagues continue to assure international financial markets that the rate will be increased this year. Based on these statements, all market participants will pay special attention to meeting of the central bank this week and try to understand the further course of the Fed.
For meeting, which is expected on Tuesday and Wednesday, good statistics on unemployment and general expenses will not be enough for the planned increase in rates after the meeting. However, there are still four meetings which will be held in July, September, October and December. The latest survey in March showed that 15 of 17 council members of Fed said that we should expect a rate increase this year. The final decision on the coming meeting will be announced at the end of week. Kevin Logan, senior analyst at HSBC USA, believes that the increase should happen, the same opinion have the majority of market participants.
The experts promised to look for clues and facts from the Central Bank, which confirmed their expectations regarding the initial rate hikes. We would like to note that the Fed has all trumps now for rate increase. Tomorrow Federal Reserve will release the new economic forecasts, which will perform the basic guideline of the Central Bank regarding interest rates, then an accompanying speech is being scheduled, and at the end there is a speech of the Fed's Head, Janet Yellen.