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Increase of Rates in the U.S. Paces are More Important than Terms

Analysts expressed an opinion on tightening of Fed’s financial politics. The main point of this opinion is that the leading value will have expecting paces of interest increase rather than terms. Using terminology, the first increase may be called as ‘irrelevant’ event for financial markets. But analysts advise not to dramatize events.


The whole financial world is in expectation of Fed’s meeting on the 17th of September, when question on a concrete step of the U.S regulator will have been sold. First time for the last 10 years the rate will be possibly increased in the U.S.  Probability of this event oscillated from confident expectation to a strong doubt, especially on the background of the last report on employment that showed no certain reference points.


After such data some experts called possible Fed’s step as bet of heads and tails. But instead of being a factor of market instability, increase may become a step that strengthens confidence, ‘freeing step’. In this case paces of further tightening of politics are more important than event.


The earlier Americans will make the first step, the more sustained will be pauses between next steps. This is a strategically right tactic, which will allow markets to reconsider new conditions of existing. Analysts, which revise this variant, support increase of rates in September.


For Example, one of the major English management companies Schroders follows this opinion. According to the opinion of an analyst from Schroders, at the current moment there are too many arguments in favor of increase of rates. However, accent must be pointed not on the fact, but on the concrete level of increase. It is expected that increase will be near 25 p. Investor’s anxiety may cause only information that the program of tightening will pass too fast.