The US Federal Reserve began its quiet period this weekend, with officials still weighing whether or not increased interest rates are needed to dampen inflation.The Fed's self-imposed blackout window refers to the two-week period in which US central bankers are prohibited from making public remarks on policy. The current quiet period began on Saturday and will run until September 17, the day after the Fed's next rate-setting meeting.Policymakers entered the period uncertain if a move to increase interest rates is needed to clamp down on energy-driven inflation from the supply crunch in the Middle East, or if they feel inflation is contained.This week's blockbuster labour report, which showed the US economy smashed expectations with 162,000 job gains in August, suggested the market is stronger than previously believed. Separate government data last month showed the Fed's inflation remained firm at 3.7 per cent.“The August employment report was stronger than expected, but not enough to cause us to change our call for the Federal Reserve to remain on hold. However, the bar for raising rates is probably lower if the Fed doesn’t see progress on inflation,” Nancy Houten, lead US economist at Oxford Economics, wrote in a note on Friday.About 60 per cent of traders believe the Fed will deliver an increase of a quarter of a point on September 16, raising its target range for the federal...
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