The sharp fall in oil prices raises concerns among some members of the Monetary Policy Committee of the Federal Reserve.
A call to take whichever indication one wishes, but see thatthe revival of America is real was Obama’s launch in late December of last year, speaking about economic growth in the United States. While the overall picture is actually encouraging, including an increase in GDP of 5% annual rate in the third quarter and the unemployment rate down to 5.8% in November, Federal Reserve remains watchful, according to the FOMC of December 17, published Wednesday, January 7.
FOMC members have pointed out the risks that deterioration in economic conditions abroad poses to US growth. These would be particularly serious if the responses of monetary policies outside the US proved to be insufficient, says the FOMC, which, in a roundabout yet rather new way, refer to the decisions of the European Central Bank (ECB).
While the ECB could launch at its meeting on January 22nd, signals are going off about a new buying program to boost the European economy.
The best and worst of the decline in oil prices mark this recent sharp drop in oil prices but also raised concerns among some members of the FOMC. If it helps to give more purchasing power to US households and thus boost consumption, the main engine of economic activity in the United States, it is also a symptom that there would be a slowing global economy, which would return to include America in the suffering.
Moreover, the decline in oil prices will help keep inflation at low levels. In any case far from the 2% target that has set the Federal Reserve. Committee members, however, remain confident in achieving this goal further down the line.
However, part of the Committee took note of the rebound in consumer and business confidence as well as the recovery in the employment situation, which would indicate that the real economy may end up being more dynamic than expected. Some even believe that the boost from lower energy prices may be important enough. But patience is required to fully understand the fluctuations in costs between interest and energy.
However, despite the increase in average hourly earnings in November, most FOMC participants see no clear sign of a rise in wages. These drawbacks have not prevented the FOMC from suggesting that a rise in interest rates could occur throughout the course of 2015, while indicating that they want to show patience.
The president of the Federal Reserve, Janet Yellen, said the rates would not increase before the end of April. Three members voted against this position, both because they believe that the Federal Reserve demonstrated too much patience, where others, to the contrary, vote because they feel that they aren’t displaying enough.