World Bank Urges Fed to Wait on Rate Hike

The World Bank has become the latest global organization to urge the U.S. Federal Reserve to delay raising interest rates until 2016, amid growing expectations that the central bank could hike as early as September.
The financial institution said on Wednesday that keeping rates at record lows would help avoid the kind of financial market volatility witnessed during the “taper tantrum” of summer 2013.

It comes as strong jobs data in the U.S. have boosted expectations that September may be the month when the Fed raises interest rates for the first time in nine years.

Lead author of the World Bank’s bi-annual Global Economic Prospects report, Franziska Ohnsorge, said while the “lift-off” of rates would likely proceed smoothly, the risks surrounding emerging markets are more acute.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza