The U.S. central bank is ambivalent whether to proceed with the interest-rate hikes in the future as the stability of the financial market is at stake and the current outlook for inflation. Over time, the primary concern of the Fed change as it was focused on the employment data before. The Fed authorities are confident that Americans can get jobs that they want with the U.S. unemployment rate at 4.3 percent. Henceforth, the Fed increased its target range for short-term interest rates once more despite the latest readings are deviating from the 2 percent target of Fed, shaking expectations compared to the past and the future. Fed Chair Janet Yellen sees the possibility for an increase in inflation confidence although other policymakers think the opposite. The market expects a sluggish growth with the 10-year Treasury yield narrowly hits the 2 percent. Thus, the Fed should be cautious in raising its short-term rates between 1 and 1.25 percent or more. However, there are concerns of some Fed officials in keeping its rates low for a long term rather than being too high or at a faster rate.
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