WASHINGTON—Two interest rate hikes may be coming this year, according to Federal Reserve Vice Chairman Stanley Fischer, who suggested that Fed Chair Janet Yellen’s recent remarks on the economy indicate that possibility, with the first hike coming in September.
But that likelihood is being played down by NAFCU’s chief economist, Curt Long, who agrees that chances of a rate hike next month are increasing, but that he does not believe a two such hikes in 2016 will take place.
“While the likelihood of two rate hikes this year remains low, the prospect for a September move is gaining traction,” Long said. “Friday’s employment figures will be telling, and a strong number in the area of 200,000 jobs added would likely presage a rate hike at the committee’s September meeting.”
As CUToday.info previously reported, Yellen recently indicated that a rate increase could still take place in 2016.
"I believe the case for an increase in the federal funds rate has strengthened in recent months," Yellen said during remarks in Jackson, Wyo.
The next meeting at which the Fed could consider such an increase is not scheduled to take place until September, with another set for November. With the latter, analysts have suggested it’s unlikely the Fed would make a move so close to the presidential elections.