Federal Reserve Chairman Dallas Robert Kaplan told CNBC on Friday he was "open" to raise interest rates in December, but is still not entirely convinced of it, the media said. Kaplan, who has voted in the Federal Open Market Commission this year, said the labor market is tightening despite weak employment figures in September, which showed a monthly decline for the first time in seven years. "We knew the September figures would be affected by Hurricane Harvey and, to some extent, Irma. And they really are, "Kaplan said.
"I prefer to look at three- to six- to nine-month trends. I think that much of the decline in jobs will, in my opinion, be temporary, "he said. The consensus estimate among economists surveyed by Thomson Reuters showed employment growth of 90,000 jobs in September. Unemployment has fallen to 4.2%. The next Fed meeting is October 31 and November 1, but markets do not expect interest rates to rise then. According to the market, however, the chances of a third rises in interest rates in 2017 are about 90% for the Fed's last Fed meeting scheduled for December 12-13, according to CME FedWatch.
"I'm open for December, but I'm not sure," Kaplan said. As for the following year, however, he said: "We can afford to be patient."
In an interview with CNBC on Thursday, Patrick Harker, Fed Chairman of Philadelphia, said he expects interest rates to rise in December and three more in the next year, depending on how dynamics turns out to be.
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