FED
The speculation has been driven by divergent Fed speak over recent days despite the disappointing economic reports. Most recently, Boston Fed President Eric Rosengren, another usually reliable dove, said the the central bank risks financial instability if it keeps rates anchored so low. San Francisco Fed President John Williams, a policy kindred spirit for Yellen, called for hiking "sooner rater than later."
Federal Reserve Bank of Dallas President Robert Kaplan said Friday it isn’t urgent for the central bank to raise interest rates and it can afford to be “patient and deliberate in its actions.”
Kaplan didn’t specifically say whether he thinks the Fed should raise interest rates at its Federal Open Market Committee meeting Sept. 20-21. But his comments suggest he may view the need to raise rates with less urgency than some other Fed officials. Kaplan isn’t a voting member of the FOMC this year.
The Federal Reserve, long hesitant to raise U.S. interest rates, increasingly faces risks if it waits too much longer so a gradual policy tightening is likely appropriate, a top Fed official said on Friday.
In another sign that a U.S. rate hike is approaching, Boston Fed President Eric Rosengren said "risks to the forecast are becoming increasingly two-sided." That means that while a slowdown overseas remains a concern, the U.S. economy has proven resilient and could even overheat if Fed policy remains unchanged for too much longer, he said.
Federal Reserve Governor Daniel Tarullo told CNBC on Friday he wants to see more evidence of sustained inflation before considering an interest rate increase. But he added he can't rule out a hike this year.
Tarullo, a voting member on the central bank's policymaking panel, said because of false starts on inflation, he'd like to see a rise in personal consumption expenditures closer to the Fed's 2 percent target. "We're not running a hot economy," he said.
OIL
Oil prices fell 4 percent on Friday, paring most of the previous session's rise as traders noted that a tropical storm was behind this week's unexpected slump in U.S. crude inventories.
The market ended up around 3 percent, its first gain in three weeks. Traders cited hopes for a global deal on stabilizing crude output after Saudi Arabia, the leading oil producer inside OPEC, and Russia, the biggest producer outside the group, agreed on Monday to cooperate in oversupplied markets.
Brent crude LCOc1 settled down $1.98 at $48.01 a barrel after rising above $50 for the first time in two weeks on Thursday. U.S. crude CLc1 was down $1.74 at $45.88.
Reference: Reuters, CNBC
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