Home' Trinidad and Tobago Guardian : August 10th 2015 Contents South Campus
#17-25 Blanche Fraser Street
(o Rushworth Street) San Fernando
(868) 653-1064, 653-9488
#1,3 & 6 Mc Carthy Street,
(868) 663-6681, 662-5739
Global Business & Technology
in the Heart of the Caribbean
CSEC | CAPE
We e Changing Ev ything!
Cambridge Chelmsford Peterborough
Anglia Ruskin University awarded the Entrepreneurial
University of the Year 2014/15 by Times Higher Education.
Anglia Ruskin University (UK)
• BA (Hons) Management
• BA (Hons) Marketing
• BA (Hons) Human Resource Management
• BA (Hons) Accounting & Finance
London Metropolitan University (UK)
• B.Sc. (Hons) Business Computing
Global Business & Technology Degrees in the Heart of the Caribbean
• Fulltime, Evenings or Saturday Classes.
• Enter with CSEC only, CAPE only to Degrees or
• Enter with work experience only.
Achieve your UK Bachelors and Masters degrees without
leaving the Caribbean. O ered exclusively at the
Caribbean's Premier International Business & Technology
Institution - SAM Caribbean Ltd.
Guardian www.guardian.co.tt Monday, August 10, 2015
WASHINGTON---A new era of higher rates on home
and car loans, steeper borrowing costs for businesses
and the government---maybe even a bit more return
for savers---is about to arrive.
That, at least, is the word from most economists.
After another solid US jobs report Friday, they say
the Federal Reserve seems all but sure to raise its
short-term interest rate next month after keeping it
pinned near zero for nearly seven years.
It would be the Fed s first rate hike since 2006.
And it would end the aggressive campaign the central
bank began after the 2008 financial crisis to save a
teetering banking system and energise an ailing econ-
omy. While it could take months, the Fed s moves
should eventually drive up interest rates for mortgages,
auto loans and other consumer and business bor-
"The most advertised and anticipated play" is a
Fed rate hike in September, David Kotok, chief exec-
utive at money management firm Cumberland Advi-
sors, said after the July jobs report showed that
employers added 215,000 jobs and that the unem-
ployment rate held at a nearly normal 5.3 per cent.
"Markets, economists, and analysts expect it."
Not all of them do.
Some economists argue that a September rate
increase isn t guaranteed. They say Friday s figures
showed that some gauges of the job market remain
weak. Pay increases, for example, are still sluggish.
And hiring hasn t been strong enough to draw millions
of Americans who ve given up on their job searches
back into the hunt.
What s more, a strong dollar is hurting US exporters
and making foreign goods cheaper in the United
States, which could shrink inflation even further
below the Fed s 2 per cent target.
"A September rate hike is by no means a done
deal," Chris Williamson, chief economist at Markit,
said in a research note. "Low inflation and cooling
growth will create powerful arguments against rate
Here are three reasons the Fed will likely raise rates
when it meets next month.
In the past seven years, the economy has gone
from hemorrhaging millions of jobs during the Great
Recession to sluggish and intermittent hiring during
the first several years of recovery to consistently
strong gains. In the past two years, employers have
added a robust average of 235,000 jobs a month.
Businesses have added jobs for 65 straight months,
the longest such streak on records dating to 1939.
"As long as you ve got payroll gains above
200,000...this meets the requirement of showing
some further improvement in the labour market and
strengthens the case for the Fed moving in September,"
said Michelle Girard, chief US economist at RBS.
Relatively low unemployment
The steady job gains have helped reduce the jobless
rate to 5.3 per cent from 6.2 per cent a year ago and
10 per cent in 2009. That s near the 5 per cent to
5.2 per cent range that the Fed says constitutes a
normal job market. Most economists expect the rate
to fall even further.
The proportion of adults who either have a job or
are looking for one has also stabilised recently. That
suggests that stronger hiring has been the main reason
unemployment has kept falling.
Ultra-low rates hamstring the Fed
Though economic growth is still modest, Fed pol-
icymakers need to raise rates from their record lows
sooner or later. Rates kept too low for too long could
make it hard for the Fed to respond to any future
Persistently low interest rates and subpar inflation
leave "less scope for the (Fed) to respond" by cutting
short-term rates to "counteract a weakening in the
Steady US job gains likely
foretell a new era: Higher rates
economy," Fed Chair Janet Yellen said last month.
Girard said the length of the recovery also points
to a hike in September: "Seven years into an expansion,
should you still be sitting at emergency rates?" she
In this July 16, 2015, file photo, Federal Reserve Chair
Janet Yellen prepares to testify before the Senate
Banking Committee on Capitol Hill in Washington.
Another solid US jobs report all but assures the Fed
will raise interest rates in September 2015, leading
to costlier home and other consumer loans. AP PHOTO
Links Archive August 9th 2015 August 11th 2015 Navigation Previous Page Next Page