Basing on the final report of the US Federal Reserve, the increase in interest rates is not included in the management plans of the US Central Bank, at least until April of this year.
And according to the protocol of the Federal Committee on Open Market, held on December 16-17, it can be concluded that the word "patience" means that the organization will not start normalization stage, at least in the next few congresses.
However, members of the Federal Committee does not believe that the present increased prices, which has not reached the 2% target, may prevent the normalization of monetary policy.
FOMC members expect that the change of "black gold" price and the US currency will undoubtedly influence the rise in prices. For example, the report says that cheap oil has a positive impact on the economy and the labor market. Consumer price index calculated by Fed increased by 1.2% in November, but still its value is less than 2%.
Opponents of the decision
One of the opponents is Narayana Kocherlakota, Federal Reserve Bank chairperson in Minneapolis. He expressed the hope that the interest rate is directly dependent on the value of inflation.
He was supported by the head of Dallas Federal Reserve Bank, Richard Fisher, saying that the US economy became more significant than his colleagues believed.
The head of the Federal Reserve Bank of Philadelphia Charles Plosser was also unhappy with the decision. He hoped that his colleagues did not pay so much attention to the coincidence of the current and previous forecasts, as, in his opinion, the time factor in long-term prognosis is not very important.
