Sep 24 2016

Rate Range Projection by Bank

Next week 100.50 –102.00

Next 3 months 98 - 105.00

The split at the Federal Reserve over when to next raise interest rates appears to hinge largely on disagreements over the labor market outlook, comments from policymakers on Friday suggest

When the Fed earlier this week decided to stand pat on rates, Fed Chair Janet Yellen said she felt the labor market had more room to run before it could overheat

Three of 10 voting policymakers dissented, saying they preferred an immediate hike rather than the deferral until later in the year that most saw as appropriate

On Friday one of the dissenters, Boston Fed chief Eric Rosengren, explained that his vote turned on his view that sharply falling unemployment could create a spike in inflation and actually trigger a recession

Two other dissenters, Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester have not comment on their decision to dissent as of Friday