Top Fed Official says Slower Rate Hikes could be on the Cards Due to Weaker Global Economic Growth
Top Fed Official says Slower Rate Hikes could be on the Cards Due to Weaker Glob

On Friday, one of the top Federal Reserve official suggested that the central bank probably requires keeping the key interest rates lower for a longer time due to a weaker economic growth globally, the dollar weighing stronger vs. a basket of other currencies and an unexpectedly longer duration of low oil prices.

John Williams , the San Francisco Federal Reserve Bank President said that he sees somewhat slower growth, unemployment that's slightly higher than recent times and inflation  that is approximately one tenth of a percent lower in the current year, compared to what he anticipated in December. That was the time when the Fed hiked the interest rates for the very first time in almost one decade. Williams said, that time the policy makers of the Fed expected four rate increased in the year but looking at the current situations things might be different.

Weakness in China's economic activities, a global slowdown, drop in equities and oil prices in January changed the scenario. In the mean time the green back strengthened hurting the U.S. inflation rate that's already lower than the Fed's target of two percent.