Who will raise interest rates first - UK’s BOE or the US Fed?
There is some confusion over the term ‘considerable time’ in recent Fed
statements. A piece
in the New Yorker notes -
“In other words, Yellen had somehow managed to render
the phrase “considerable time” even more vague. The Fed watchers, failed
utterly by their thesauruses (synonyms for “considerable” can range from
“reasonable” and “respectable” to “huge” and “astronomical”), have generally
concluded that an increase remains very likely to take place next year. Further
supporting that interpretation, the Fed released an economic-projections
document Wednesday showing that fourteen members of the committee felt that
2015 was the appropriate year to raise rates, while one person said that it
should happen this year and two people believed that 2016 made the most sense.”
Zhou Xiaochuan – Chinese Central Bank Chief