Constantin Gurdgiev: Long-term Fed path may force ECB to act

Positives for Ireland, but 'normalisation' in US may lead to higher euro zone rates

15th December, 2016
US Federal Reserve Board Chair Janet Yellen holds a news conference after the central bank announced an increase in the benchmark interest rate. Pic: Getty

The key to understanding the real economic effects of the Fed announcement is in what it says about forward policy signalling. The FOMC position has shifted this week toward an expectation of three hikes in 2017, up 75 basis points for the full year, against September 2016 expectations of two such hikes and 50 basis points.

Meanwhile, prior to the Fed announcement, market consensus expected the Fed to be moving towards a 1.5 per cent rate target by 2019,...

Subscribe from just €1 for the first month!

Currency

What's Included

With any subscription you will have access to

  • 971569B3-2C5E-4C45-B798-CEADE16987A8

    Unlimited multi-device access to our iPad, iPhone and Android Apps

  • 099C8662-C57C-42F2-9426-F2F90DF17C8F

    Unlimited access to our eReader library

  • 198AE43B-B9CF-4892-8769-D63C2104BA08

    Exclusive daily insight and opinion seven days a week

  • D8F37B78-25E4-4E4A-A376-4F5789B1564A

    Create alerts to never miss a subject that matters to you

  • B15F2521-37CD-4E02-B898-730A20D39F7F

    Get access to exclusive offers for subscribers on gifts and experiences

  • A564FE02-1AB8-4579-AF9D-BA32A2E5ACA7

    Get content from Business Post, Business Post Magazines, Connected, Tatler and Food & Wine

Share this post

Related Stories

Private rental sector remains strong despite Covid-19

How the programme for government will shape housing

Insight Niall Byrne 1 year ago

Comment: US must defuse Covid-19’s ticking time bomb of debt

Comment: The recovery will be more U than V-shaped

Insight Larry Hatheway 1 year ago