Fed Seen Moving Soon to Head off Inflation: M&G -- Market Talk
19 September 2016, 03:45
0345 GMT [Dow Jones] The Federal Reserve is likely to start hiking soon given improvements in U.S. economic data, says Richard Woolnough, a fund manager at M&G Investments. "It takes a while for monetary and fiscal policy to work," he says. "As we get to full employment, wages and inflation will pick up." Recent unemployment data will encourage the Fed to start moving monetary policy to prevent inflation from building up next year. "It's not like surge pricing on Uber," he adds. Core CPI rose 2.3% in August, the 10th straight month above 2%, data released Friday show, though the Fed's preferred personal consumption expenditure gauge remains below target. (gregor.hunter@wsj.com; Twitter: @gregorhunter)
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(END) Dow Jones Newswires
September 18, 2016 23:45 ET (03:45 GMT)
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