Growth probability in Fed's rate for December reaches 78%

Baku. 27 September. REPORT.AZ/ The Federal Reserve System (Fed) should continue to gradually increase interest rates, despite the uncertainty about the trajectory of inflation. 

Report informs citing the Reuters, Fed president Janet Yellen stated yesterday in Cleveland.

According to her, Fed could admit "inaccuracy" in its inflation models and "underestimate" key factors, such as the strength of the labor market and the stability of inflation expectations. The weak inflationary factors will soon disappear: "Keeping interest rates at this level will not be right until the inflation target reaches 2%."

Yellen also added that "Fed should avoid moving too slowly”.

After the speech of Fed president, probability of an increase in discount rate at the December meeting reached 78%. Notably, before the meeting in Cleveland, this figure was 73%.