NEW YORK (Reuters) - The Federal Reserve will likely end its two-year credit tightening cycle at the end of June when it raises interest rates to 5.25 percent, an influential New York-based think tank said on Friday. Fed policy-makers, like their counterparts at the Bank of Japan and the European Central Bank, are very sensitive about increasing rates while economic growth is slowing, but recent inflation data has forced them to tighten a little more than they had planned, the think tank said in a presentation to analysts.
"The Fed will hike rates at the June meeting up to 5.25 percent, and they will keep the 'vigilant' language open even while they are softening the economic outlook," said a member of the firm, which meets regularly with Fed officials.
"The Fed will hike rates at the June meeting up to 5.25 percent, and they will keep the 'vigilant' language open even while they are softening the economic outlook," said a member of the firm, which meets regularly with Fed officials.
This entry was posted
on Friday, June 16, 2006 at 11:34 AM.
