Fed mulling 'wait-and-see' tactics after rate hike - report

Economy 12/6/2018, 9:45 PM
Fed mulling 'wait-and-see' tactics after rate hike - report

The Federal Reserve is mulling a new "wait-and-see" tactics if they implement a highly expected interest rate hike later in December, the Wall Street Journal reported on Thursday. The change in the central bank's approach to the monetary policy could ease the pace of rate increases in 2019. So far, market watchers expect three more interest rate hikes next year.

The Fed is reportedly going to test the new tactics based on stock performance in the upcoming last few weeks of this year. The decision to adopt a less traditional approach to the monetary policy signifies that the central bank considers the domestic economy to be in good shape despite the recent market volatility in both stocks and oil prices.

Earlier today, President of the Atlanta Federal Reserve Raphael Bostic said that he believes the interest rates are "within shouting distance of neutral" and that the Fed has almost succeeded to bring the domestic economy into balance.

Breaking the News / VK