Fed will view April jobs report as signaling it does not have to rush to raise interest rates

Economists said Friday that Fed officials would be satisfied with the employment report in April, their policy can gradually raise interest rates.

Michael Hanson, US chief strategist at TD Securities, said, "This means that there is a possibility that it will progress gradually, do not hurry."

"The Fed expects wages and prices to continue to rise, but the markets are already ahead of rapid inflationary changes," he added.

The economy added 164,000 jobs in April and made the unemployment rate less than 4% for the first time in 17 years. Nevertheless, the wage pressure is still weak. The wage rise rate in April in December was 6%, the data for the previous month was also lowered to 6%.

Mr. Hansen said that at the Fed meeting held in June and September, we gradually set the weighting to quarterly rate hike. He said that the current move in December is out of his prediction. Many economists have this extra movement

According to CME FedWatch, traders using FedEx futures contracts currently think that the June rate hike is positive.

Most FRB officials have raised interest rates three to four times this year. The central bank rose once in March

Omair Sharif, a senior US economist at Societe Generale says, "According to employment data this shows a step-by-step approach."

Following this week's policy meeting, the Federation played a concern of inflation despite its favorite inflation indicator - the Individual Consumption Expenditure Price Index rose to 2% in 12 months.

Mr. Sharif said, "They have not admitted that the inflation rate has risen as much as possible," suggesting that inflation rates will temporarily exceed 2% of the target.

Central Bank president said inflation and wage will rise when the unemployment rate falls below 5%.

Fed officials should now be tolerant of the possibility of a lower "full employment" rate.

Scott Anderson, Chief Economist at Western Bank, says:

US Treasury's 10-year Treasury yield yielded US $ 400 million, + 0.24% 931%, 2-year TMUMBUSD 02 Y + 0.49%, yields 481%.

At the end of last year, the Fed finally raised the target interest rate to 50 basis points. Since the Fed decided to raise interest rates in the face of the ongoing signal of deflation and the signs of an increase in the global recession, the real issue of this announcement and the issue that is not widely debated is that the Fed raises its normal interest rate That means that you can not raise interest rates. . In reality, the target does not have an actual Federal Fund Market and there is no excess preparation beyond the $ 3 trillion around the banking system. If the Fed is "tightening" monetary policy and trying to regulate federal funds transactions using its traditional open market practice, you need to reduce the balance sheet by drawing trillions of dollars from the banking system there is. Cause a big financial crisis

The recent annoyance of playing cards is that the Fed decided to raise the federal funds rate, controlled short-term interest rates, raised interest rates three times this year, and announced more interest rates in December 2019 and 2019 as Trump Thursday He explained that the Fed is "too strict and too fast" as explained, indicating that there is a possibility to do so. In fact, he is not the only person to have this opinion. "I think he has a point here," Dean Baker, senior economist at the Economic Policy Policy Research Freedom Center, told the cards on Thursday. For a while Baker insisted that the Fed reacted prematurely, jeopardizing the recovery of the economy and ultimately bringing obvious benefits to working families. "Do we really see evidence of accelerated inflation to prove this?" Baker said. "No, it is not so"