Fed president: Good chance for no 2019 rate hikes
SAN FRANCISCO – Feb. 20, 2019 – San Francisco Federal Reserve President Mary Daly says there is a good chance the U.S. central bank will not raise interest rates at all in 2019, even though many outside pundits still predict one to two increases this year.
"If the economy evolves as I just said I expect it to – 2 percent growth, 1.9 percent inflation, no sense that [price pressures are] going up, no sense that we have any acceleration – then I think the case for a rate increase isn't there," Daly said.
Daly isn't quite ready to commit to her "no interest rate hike" prediction just yet or make a formal call, however.
Fed officials will offer updated rate projections at their March 19-20 meeting, and Daly says she will use the time between now and then to make an assessment.
Other economists still expect a potential rate increase by year's end. Philadelphia Fed leader Patrick Harker says he predicts one hike this year and another in 2020.
Source: Wall Street Journal (02/15/19) Derby, Michael S.
© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688
Information provided by Florida Realtors. Click here to see the original article.
Reprinted with permission Florida Realtors. All rights reserved.