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Fed likely to raise interest rates twice this year
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Loading...Тhe U.S. Federal Reserve will probably raise interest rates twice this year, with the first increase in almost a decade coming as early as next month.
Economists put a 60 percent probability on a September rate hike and an 85 percent chance that it would move by year-end.
"If the FOMC (Federal Open Market Committee) acts in September, there is a good possibility that it will in December as well," said economist Terry Sheehan.
The case for a September monetary policy move was bolstered by solid job gains and a rebound in wages in July. In addition, economic growth accelerated in the second quarter.
After China's surprise devaluation of the yuan, U.S. financial markets are cautious.
The Fed, currently targeting a range of zero to 0.25 percent, has not raised interest rates since 2006.
Even if the Fed raises interest rates twice this year, the tightening process would still be gradual, economists said, citing a strong dollar.
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