Can The Fed Raise Interest Rates This Year? This Is Not True.

US Treasury bonds data show that the expected US inflation rate has dropped to its lowest level in six years.

This is quite different from what the Fed officials insisted on raising interest rates during the year.

The interest rate hike is still controversial.

On Monday, San Francisco Fed chairman John Williams, who has the voting rights of the Federal Reserve's monetary policy conference this year, said the Federal Reserve would start raising interest rates gradually later in 2015. Raising interest rates is the next appropriate measure.

He said he began to see signs of imbalances in the US economy, which existed in the form of high asset prices, especially in the real estate sector.

Once the imbalance is widening, the Fed's options will be very limited.

On Monday, Federal Reserve No. three and New York Federal Reserve Chairman Dudley (William Dudley) said that the economy was performing well, making progress in the direction of the Fed and expected that the Federal Reserve would raise interest rates later this year.

If the economy remains in the current path, there is a strong reason to raise interest rates, and if the financial environment tightens, it may prompt the fed to slow down.

Federal Reserve Chairman Yellen reiterated on Thursday that it is expected to raise interest rates later this year. Fed policymakers do not believe that the recent economic and financial situation will seriously affect the Fed's policy path.

What matters is not the "precise time" for the first time to raise interest rates, but the entire interest rate path.

She said it would raise interest rates in a very gradual pace in the next few years.

This Monday, measure

The expected five - year inflation rate in the US has fallen more than eight months ago. The first time since 2009, it has fallen below 1% for the first time since the beginning of the year, and is far from the 2% target of the Federal Reserve.

US stocks and commodity prices are also falling as inflation expectations decline.

But Fed officials are still saying they are preparing to raise interest rates.

Kei Katayama, a Tokyo based bond manager who manages the $48 billion 500 million asset, said that while the inflation rate was plummeting this week, the Fed also tried to calm market volatility, saying the US economy was in good health.

Last week's Wall Street article noted that after the Federal Reserve meeting this month decided to maintain close to zero interest rates, Deutsche Bank researchers believe that some people have criticized the Fed's monetary policy, which is not unreasonable, because the decision of the Fed is almost entirely determined by the stock market.

The article cited the Stuart Kirk, managing director of Deutsche Bank.

Since 1994, the Federal Reserve has decided to cut interest rates 23 times.

The average annual yield of the S & P 500 fell by 4.5% after a Federal Reserve meeting before deciding to cut interest rates.

When the Fed kept interest rates unchanged, the stock market averaged 10.8% annually after the last fed meeting.

Kirk also predicts: "if the S & P 500 index falls to less than 1989 in December, the Fed will stay put again."