October 16, 2017
Interest rates are expected to continue rising based on comments made by Federal Reserve Chair Janet Yellen at the Group of 30 international banking seminar over the weekend. Economists envision the next rate hike to transpire in December, which would be the third this year.
The central bank still believes the economy is strong enough to withstand another bump. Yellen believes the recent hurricanes will only slow economic growth temporarily, with gross domestic product growth likely rebounding in the current quarter.
Yellen indicated that surprising low inflation has persisted this year, though it is expected to pick up once temporary factors fade, such as falling prices for consumer cellphone service. “Economic activity in the United States has been growing moderately so far this year, and the labor market has continued to strengthen,” said Yellen, who spoke on a panel with central bank officials from China, Japan and the European Central Bank.
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