Federal Reserve officials are divided over the timing of raising interest rates, stirring uncertainty over its game plan for withdrawing its monetary stimulus.
Two Fed officials have expressed their opposition to a rate hike in the near future, questioning Chair Janet Yellen’s approach despite divisions over the inflation outlook.
Fed Governor Daniel Tarullo said his current expectation was it was not suitable to increase rates this year, implying to wait for further evidences. Also, Fed Governor Lael Brainard was in favor of taking a wait-and-see approach. Both policymakers seemed to ignite doubts about Yellen’s approach.
Yellen said she was one of the policymakers who believe a rate hike was the right move, stipulating falling commodity prices were possibly a temporary headwind to inflation.
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