Federal Reserve bumps up United States interest rate, signals two more in 2018

14 Juin, 2018, 03:13 | Auteur: Auguste Feret
  • Fed Rates Increased for Second Time This Year

The central bank also lifted its growth forecast to 2.8 per cent this year, up a small amount from its projection of 2.7 per cent annual growth in March. The number viewing three or fewer hikes as appropriate fell to seven from eight. In its statement the central bank said that "economic activity has been rising at a solid rate".

"In view of realized and expected labor market conditions and inflation, the Committee chose to raise the target range for the federal funds rate to 1-3/4 to 2 percent", the Fed said in a statement.

The statement omitted previous language saying that the main rate would remain "for some time" below longer-run levels. Inflation by the Fed's preferred gauge would hit its 2 percent target this year and edge up to 2.1 percent over the next two years. This assessment will take into account a wide range of information, including measures of labour market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and global developments.

After nine years of steady if uneven recovery, the United States is now growing at a pace topping 4 percent, unemployment is as low as it has been this century, and inflation has safely edged up toward an official target.

A gradual rise in inflation is coinciding with new-found economic strength.

"Recent data suggest that growth of household spending has picked up, while business fixed investment has continued to grow strongly", the Fed wrote in its statement on Wednesday announcing the interest rate hike.

Following its two-day monetary policy meeting, the Federal Reserve raised interest rates by 25 basis points Wednesday, in line with expectations.

Prince Harry and Meghan Markle 'rent converted cowshed' in Cotswolds
Given how many rules and traditions the Royal Family are said to adhere to, it's little wonder Meghan still needs some guidance. Meanwhile, while Meghan is in work mode, Kate Middleton , 36, is spending her summer maternity leave having fun.

Tiffany Haddish infuriated Sanaa Lathan's family with Beyoncé bite story
DiCaprio was once (and still is?) a member of the famous "pussy posse" with friends Tobey Maguire and Kevin Connolly . "I was just trying to say how Beyoncé kept me from goin" to jail that night.

Singapour: Signature d'un important document entre Trump et Kim
En 1994 puis en 2005, des accords avaient été conclus mais aucun d'entre eux n'a jamais été réellement appliqué. Mais Kim Jong-un et la plupart des autres chefs d'État ne sont pas aussi étriqués d'esprit -ou aussi naïfs.

"The economy is doing very well", Powell said at a news conference after the meeting. Powell has repeatedly played down the dot plot as a guide to future interest rates, though investors continue to focus on it.

In the U.S., Fed officials are setting policy for an economy that's being boosted by $1.5 trillion in tax cuts and a $300 billion increase in federal spending, while unemployment has fallen to levels that match the lowest since 1969. US payrolls expanded by more than 1 million workers in the first five months of 2018, reaching the milestone faster than in the previous two years. Inflation expectations are slightly higher this year compared to March's forecast of 1.9%. Estimates of the long-run sustainable unemployment rate were unchanged at 4.5 per cent.

The Fed anticipates that inflation will overshoot its 2% target this year; in March, officials saw that happening only in 2020.

The Fed now envisions stronger growth this year - 2.8 percent, up from the 2.7 percent it predicted in March.

Traders correctly foresaw the June rate hike, the central bank's second this year, and had been quite confident of a rate hike in September. After years in which the economy expanded at roughly a tepid 2 per cent annually, growth could top 3 per cent this year.

USA companies are hiring at a rapid pace and consumer and business spending remains healthy, the Fed noted, and core inflation is finally expected to hit the central bank's target of 2 per cent this year. The committee's forecast for the long-run sustainable growth rate of the economy held at 1.8 per cent, suggesting policy makers are skeptical of the effect of tax cuts on the economy's capacity for growth.

Conseillé:



Populaire

L'Etat s'appropriera tous les actifs d'ADP y compris le foncier
Le gouvernement français tient son nouveau cadre juridique adapté pour des cessions dans ADP ( Aéroports de Paris ), Engie et la Française des Jeux .

Jada Pinkett Smith reveals her grandmother taught her about 'self-pleasuring'
Jada asked what her daughter's feelings were about that incident and Willow said she had simply "overstepped a boundary". That intuition. "You know, when you can talk to your mother who's been through a whole lot in regards to sex".

Garmin's newest Vivoactive 3 smartwatch adds music, improved sleep tracking
But the watch had a couple of drawbacks - namely that it lacked advanced sleep-tracking analysis and offline music storage. The Garmin Vivoactive 3 Music is really for those who will take advantage of its music storage and offline listening.

Brexit campaigner Arron Banks says whistleblowers not credible witnesses
Banks has branded the investigation a "joke" and said it had "fired an arrow into the wall and painted a target around the arrow". But he abruptly left the hearing after more than two and half hours, saying it had over-run and he had another appointment.

Ariana Grande a finalement trouvé l’homme qu’il lui fallait !
De sa part, Pete Davidson s'est également fait tatouer le logo sa bien-aimée, derrière l'oreille, ainsi que ses initiales sur la main.

Trump economic adviser Larry Kudlow suffers heart attack
Kudlow joined the Trump administration this year as director of the National Economic Council. White House spokesman Hogan Gidley said in a Twitter posting.

Speaker John Bercow praises behaviour of a baby in the Commons
SNP leader and Scottish First Minister Nicola Sturgeon tweeted minutes later that she was "right behind" her party's MPs. Yet last night she pressed ahead with a power-grab in direct opposition to Scotland's elected Parliament.

Verstappen posts more fast times in Canadian GP practice
Ricciardo had problems early in the session, but after repairs was able to rejoin the fray and clock a very competitive time . I'm really happy with what I did and what the team did. "It was waiting, waiting, waiting and eventually we got out.

House Dems Call for Corruption Investigation of EPA Head Scott Pruitt
Pruitt is now facing multiple inquiries from ethics watchdogs, federal auditors and congressional committees into his actions at the agency.

The incredibly creepy first trailer for Tim Burton's 'Dumbo' is here
At the end of the trailer , Parker's character turns out to be the key to the pachyderm's flight, telling him, "Here, Dumbo ". Disney shared the first teaser trailer for the live-action remake of "Dumbo," directed by Tim Burton on Wednesday, June 13.