NEW YORK – The U.S. Federal Reserve is likely next week to raise its target federal funds rate to 1.75 percent from 1.5 percent, nearing the end of the first stage of what appears to be a two-stage plan to return rates to “normal” levels, the Wall Street Journal said on Tuesday.
The article by Fed-watcher Greg Ip contained no direct attribution to Fed officials. But Ip has made enough correct calls on central bank policy to make financial markets highly sensitive to his reports.
The Fed is expected to announce any decision on rates next Tuesday at 2:15 p.m.
The newspaper said the first phase of Fed tightening will cause the funds rate, charged on overnight loans between banks, to rise to 2 percent between next week and the Fed’s December meeting. It had stood through June at a 46-year low of 1 percent.
For this complete story, please visit Federal Reserve Seen Raising Rates Next Week.
