Bloomberg (12/31/14) Michelle Jamrisko
The U.S. Federal Reserve is expected to increase its benchmark interest rate around mid-year due to an improving labor market and anticipated higher wages. Rates have been near zero for six years.
“We’re still saying June with risks to September,” says Michael Gapen, chief U.S. economist for Barclays PLC. The Fed “can push rates higher in the middle of the year, even though visually that may look awkward if headline inflation is around zero.”
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