Forecast: Fed may soar discount rate every quarter

Baku. 8 February. REPORT.AZ/ The U.S. Federal Reserve System (Fed) may increase discount rate increase fourfold (each quarter) in 2018. 

Report informs citing the Investing.com, the probability is 50% right now.

According to analysts, macroeconomic factors are key reasons, causing further hardening of Fed's monetary policy. Thus, in January, 200,000 new jobs were created in the US and wages grew by 0.3%. Inflation continues to accelerate. In December, the inflation rate exceeded Fed’s target (2%) and made 2.1%.

Analytical Group of Report News Agency informs, there are two factors that are currently creating uncertainty for global markets.

One of them is position of Fed's new head, Jerome Powell, on monetary policy and secondly, the impact of tax reforms in the US on the economy. Gradually these two factors will have an impact on the economy, which will enable them to identify their direction in global financial markets.

The dollar's exchange rate, stock markets, interest rates, and raw material prices will directly depend on the prospects for the US economy's development in 2018.