US Federal Reserve raises rates as expected

27 Septembre, 2018, 15:26 | Auteur: Auguste Feret

Asia generally fared better than Wall Street, where the Dow Jones Industrial Average fell 0.4 per cent and the S&P 500 lost 0.33 per cent.

The move was widely expected, as investors who bet on foreign exchange rates were forecasting a 100 per cent chance of a hike in recent days and weeks. In July, he wrote on Twitter that the move "hurts all that we have done".

In a CNBC survey of economists, fund managers and strategists, 98% of respondents expect the Fed to hike rates a quarter point Wednesday to a range of 2 to 2 ¼%.

The Fed lifted its short-term rate - a benchmark for many consumer and business loans - by a modest quarter-point to a range of 2 per cent to 2.25 per cent. "Unfortunately they just raised interest rates a little bit because we are doing so well".

Higher U.S. rates, though, may force more emerging markets to tighten monetary policy to defend their currencies at a time when investors are punishing those with fault lines such as large current-account deficits.

In a statement after its latest policy meeting, the Fed dropped phrasing it had long used that characterized its policy as "accommodative" - that is, favoring low rates.

The Fed noted that inflation has remained near its 2 percent objective.

USA interest rates remain relatively low, reflecting the Fed's decision to lower them dramatically amid the 2007-2009 financial crisis in an effort to encourage borrowing and boost economic activity. But it has been gradually raising them over the past three years.

World Health Organization warns of 'perfect storm' for Ebola in eastern Congo
These suspensions have disrupted aid to thousands of people in need of humanitarian assistance and protection. The worldwide response was swift, however, and the outbreak was declared over in June with 33 deaths.

Gold holds steady ahead of Fed meet
On account of trade war investors started running towards the safe haven of dollar which led to major fall in gold prices. Spot palladium increased 0.3 percent at $1,062.20 per ounce after hitting $1,068.50, its highest since late January.

L'échange musclé sur l'Iran s'invite au Conseil de sécurité de l'ONU
Donald Trump a ensuite consacré un chapitre entier à l'Iran. "C'est vrai." a-t-il déclaré suscitant les rires de l'assemblée. Le 'Commander in Chief' a préféré prendre tout cela avec humour: " je ne m'attendais pas à cette réaction, mais ça va ".

In its updated outlook Wednesday, the Fed foresees one final rate hike after 2019 - in 2020 - which would leave its benchmark at 3.4 per cent.

The Fed once again said "further gradual increases" would allow continued expansion of the economy while keeping inflation around the Fed's 2% target. We can do other things with the money. But it does have a plan: using a series of deliberate rate hikes to stanch further economic improvements and keep the U.S. economy poised on the near side of that line between strong growth and unsustainable growth.

But analysts say the central bank is tangling with a complex set of near-term economic questions, including a trade confrontation with China affecting hundreds of billions of dollars in goods that is likely to be inflationary; tax cuts and fiscal stimulus late in the economic recovery; and dizzyingly high asset prices alongside more or less stagnant wage growth. The initial price action suggested the market first interpreted the word's removal as "the end of the Fed tightening cycle".

The Hong Kong dollar is pegged to the United States currency, so the Hong Kong authorities tare obliged to take steps to maintain the exchange rate within a narrow range.

The euro traded at $1.1704, down 0.3 per cent and off a three-month high of $1.18155 touched on Monday.

William Rhodes, president and chief executive officer of William R. Rhodes Global Advisors, discusses his forecast for Federal Reserve monetary policy.

The location of a neutral rate for policy is the subject of heated debate, with estimates within the committee ranging from 2.5 per cent to 3.5 per cent. Powell has repeatedly played down the importance of neutral given economists' inability to know precisely where it lies.

Oil prices gained on an impending fall in Iranian exports due to U.S. sanctions, which are set to be implemented in November.


  • Gay penguins steal baby from ‘neglectful’ parents from Denmark Zoo

    Gay penguins steal baby from ‘neglectful’ parents from Denmark Zoo

    She said while the mother desperately searched for her missing baby, the father was fairly nonchalant throughout the ordeal. While the chick's father didn't seem to notice, its mother began searching.

    Man United manager Mourinho linked with switch to Wolves after Pogba row

    The post emerged at 10.28pm, minutes after Frank Lampard's Rams had dumped United out of the cup at the third round on penalties. Speaking on Sky Sports he added: "No fallout at all, no problem at all, just a decision that I don't have to explain".
    Doctor Who Returns On October 7, Moving To Sundays On BBC America

    Doctor Who Returns On October 7, Moving To Sundays On BBC America

    It means remembering everyone I used to be, while stepping forward to embrace everything the Doctor stands for: hope. He joked: '(Also, move the sofa away from the wall so parents can hide behind it during the scary bits).
  • Here's why Kate Middleton is absent in the Queen's new documentary

    Here's why Kate Middleton is absent in the Queen's new documentary

    A source told People magazine that George was "the leader of the pack" and said that the five-year-old was "having a great time". A major royal tradition was broken with Princess Charlotte at the wedding of William and Kate's friends over the weekend.
    Juventus win again to make best start to season in 88 years

    Juventus win again to make best start to season in 88 years

    Luca Pellegrini came off the bench for his Serie A debut, to set up Aleksandar Kolarov for the fourth three minutes from time. Lazio had to cling on, however, after Bram Nuytinck pulled one back with an overhead kick with 10 minutes left.

    Donald Trump says he's 'not happy' about Fed's interest rate increase

    That's an acknowledgment rates have moved closer to the neutral level which neither boosts nor restrains the economy. In dropping that language, the central bank may be signalling its resolve to keep raising rates.
  • Jose Mourinho arrives for Man United training amid Paul Pogba bust-up

    Jose Mourinho arrives for Man United training amid Paul Pogba bust-up

    The Hammers have found form in recent weeks, beating Everton and Macclesfield and drawing with Chelsea. Reports claim Mourinho delivered this blow to Pogba in front of his United team-mates.
    Task force says B.C. should base rent hikes solely on inflation

    Task force says B.C. should base rent hikes solely on inflation

    He said Ontario and Manitoba both require landlords to prove they have done work before they can receive the extra rent increase. Now the formula allows for rents to go up annually by the CPI plus two per cent.
    Aggressive octopuses were given Ecstasy and they started behaving very human-like

    Aggressive octopuses were given Ecstasy and they started behaving very human-like

    Whether MDMA use also fosters in octopuses an enhanced appreciation of electronic dance music is a study for another day. Octopuses given the drug ecstasy become more social and try to hug each other, a study has found.
  • Dark Phoenix enlève le ''X-Men'' de son titre — X-Men

    La date de sortie de X-Men: Dark Phoenix est calée au 13 février 2019 dans les salles françaises. Obnubilé par sa notoriété, il envoie ses mutants dans des missions de plus en plus dangereuses.

    "Alexa, Why Won't You Respond?" Amazon's Voice Assistant Suffers Outage in Europe

    Amazon has yet to comment, but it's advising users to restart their Echo device - to no avail. Luckily, one Echo lover wasn't too disturbed about the outage.
    Twitter can't believe Meghan Markle closed her auto  door

    Twitter can't believe Meghan Markle closed her auto door

    Place-making will explore the settlement of communities and Encounter will focus on trade and exchange in Pacific cultures. After announcing her engagement to Prince Harry late a year ago , Meghan confirmed her departure from the acting world.


Plusieurs personnalités remplaceront Alain Chabat dans Burger Quiz — Télé
Le retour réussi du concept télévisuel improbable de Burger Quiz doit beaucoup à Alain Chabat , monstre sacré du petit écran en France.

Bottom-placed Leganes stun Barcelona in La Liga
LaLiga champions FC Barcelona suffered their first defeat of the season, after going down 2-1 to Leganes on Wednesday evening. He used his right boot to rip a volley into the far post netting, beating Leganes goalie Ivan Cuellar .

Xiaomi announces new Mi TVs for Indian market
There's also Chromecast built-in, so you can stream content from your smartphone to the Mi TV , along with Google Voice Search. In China, Xiaomi sells the standard Mi Band 3 version without NFC for CNY 169, which translates to Rs.1,800 India.

Wall Street dips after Federal Reserve raises rates
While they raised projections for expansion this year and next, they predicted that growth would slow to 1.8 per cent by 2021. Fed officials, in the statement, repeated their assessment that "risks to the economic outlook appear roughly balanced".

Canal+ condamnée à lui verser 3,4 millions d'euros — Maïtena Biraben
Son slogan d'alors est: "Maïtena et moi jusqu'en 2022". Canal +, contactée, s'est refusée à tout commentaire. Les parties peuvent faire appel.

Flyers' Jori Lehtera an alleged suspect in cocaine ring
Obviously, this isn't an ideal situation for Lehtera to find himself in, especially as he's trying to survive the Flyers' preseason roster cuts.

Oil markets take a breather as U.S. supplies rise once again
OPEC, along with other suppliers except for Russian Federation , began to limit their output in order to raise crude values. United States crude futures rose 20 cents to US$72.28 a barrel, close to the highest since mid-July.

New Accusations Against Kavanaugh Include ‘Gang Rape,’ According to Sworn Statement
I often witnessed Brett Kavanaugh speak in a demeaning manner about girls in general as well as specific girls by name. The Epoch Times wasn't immediately able to verify the claims and is refraining from publishing the details.

President Donald Trump boasts of 'very, very large brain'
On Monday, the USA deepened its trade conflict with China when tariffs on another $260 billion in Chinese goods came into effect. It was only the third time in United Nations history that a USA president chaired a Security Council meeting.

KJo Teases "Biggest Blockbuster" With Aamir, SRK, Ranveer & More
Ranbir, on the other hand was standing behind King Khan, and had put his hand around Deepika and Ranveer. Director Karan Johar is known to release multi-star cast films and his newest venture is no exception.