New York Federal Reserve Bank President William Dudley said on Monday the Fed remains on track for a likely rate hike this year and could reach its inflation target next year, faster than many other policymakers anticipate.
Dudley said the first hike could come as soon as October as policymakers take stock of an improving economy.
The U.S. central bank delayed a rate hike at its September meeting in the face of uncertainty about the global economy, a market selloff in the U.S. and concern that inflation might fall further away from the Fed's two percent target.
Dudley, an influential voting member of the policy setting Federal Open Market Committee and close ally of Fed Chair Janet Yellen, said he remains confident that factors keeping inflation below the Fed’s 2% target rate will “flush out” and push inflation higher in the next year or two.
This morning news focused again on the Asian markets which fell sharply on fears over growth prospects and commodity prices which continued to drive a global sell-off in equities. A weak survey of Chinese industrial profits, released on Monday, also added to investors' concerns about the world's second-largest economy.
As a result of the negative data saw shares in the worlds largest commodity trader Glencore fall as much as 28% in Asia’s afternoon trade following a similar drop in London on Monday. There are some fears that the slowdown in china could drag the the global economy into another recession.
13:00- EUR: German Consumer Price index (Sept) expected to fall from 0.0% to -0.1%
19:40- GBP: BoE Governor Mark Carney Speech
Daily Market Report - 29/09/2015