Thursday, 19 Apr 2018
Business

Fed’s Dudley expects up to four rate hikes in 2018

NEW YORK.- The Federal Reserve US will probably raise interest rates gradually, three or four times in total this year, and could point to raising the policy rate to about 3 percent, William Dudley, president of the New York Fed, estimated Monday. “The markets are seeing that three is possible, four is possible, but five or six seems to me to be quite unlikely,” said Dudley, an influential Federal Reserve official in an interview with CNBC. For his part, the president of the Bank of Dallas, Robert Kaplan, He anticipated a drop in unemployment, wage increases and solid economic growth in the United States this year and next, although he warned that without structural reforms activity will be impaired in the future. Policies that increase immigration, allow the United States to take advantage of globalization and trade, slow down the growth of government debt and boost education achievements are among the changes required by the country, said Kaplan in an essay published before a speech in Miami. “Since the short-term outlook for GDP growth is positive, this could lead observers to believe that we are on a path of sustainable improvements in the economic performance of the United States,” Kaplan wrote. But the rate of expansion will be below 2 percent after 2019 because the effects of the fiscal stimulus and the tax reform will dissipate, to which will be added the withdrawal of the expansive monetary policy measures by the Fed, he said. . Unless steps are taken to reverse the resistances of a structural nature, he added that “we will probably see lower rates of GDP growth in the medium and long term.”

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