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TechnologyU.S. fed holds rates steady, says economy remains on track

22:06  08 november  2018
22:06  08 november  2018 Source:   reuters.com

New Brunswick's looming fiscal reckoning

  New Brunswick's looming fiscal reckoning New Brunswick's looming fiscal reckoningNew Brunswick is what some might call a poor cousin of Confederation — it has the nation's lowest median household income, and was the only province that recorded a population decline between 2011 and 2016.

WASHINGTON — The Federal Reserve held interest rates steady at the conclusion of its two-day policy meeting on Wednesday and acknowledged rising inflation, but it gave little indication that officials are worried about a sudden

Federal Reserve officials upgraded their already high marks for their economy , issuing a statement that keeps them on track to raise rates next month and in December. Here are four takeaways from Wednesday’ s Fed statement: The economy is running hot, but inflation fears remain contained.

The U.S. Federal Reserve held interest rates steady Thursday and said ongoing strong job gains and household spending have kept the economy on track.

"The labor market has continued to strengthen and . . . economic activity has been rising at a strong rate," the Fed said in its latest policy statement, leaving intact its plans to continue raising rates gradually.

The statement reflected little change in the U.S. central bank's outlook for the economy since the last policy meeting in September, with inflation remaining near its 2 percent target, unemployment falling and risks to the economic outlook appearing to be "roughly balanced."

Canadian dollar holds near three-month high as inflation data boosts rate-hike bets

  Canadian dollar holds near three-month high as inflation data boosts rate-hike bets Canadian dollar holds near three-month high as inflation data boosts rate-hike betsCanada's annual inflation rate dipped to 2.8 percent in August from 3.0 percent in July, the seventh consecutive month it has exceeded the Bank of Canada's 2.0 percent target, Statistics Canada data indicated. All of the central bank's core inflation measures were 2.0 percent or higher, for the first time since February 2012.

The Federal Reserve is expected to keep interest rates unchanged on Wednesday, but solid economic growth combined with rising inflation are likely to keep it on FILE PHOTO: The Federal Reserve Building stands in Washington, DC, U . S ., April 3, 2012. REUTERS/Joshua Roberts/File Photo.

WASHINGTON—The Federal Reserve held short-term interest rates steady Wednesday and offered an upbeat assessment of the economy ’ s performance, suggesting another interest- rate increase is likely at its next meeting. The Fed repeatedly emphasized the economy ’ s strength in a statement

Policymakers, however, noted that business investment had "moderated from its rapid pace earlier in the year," a possible drag on future economic growth.

Financial markets had expected the Fed to hold its benchmark overnight lending rate steady in the current range of 2.00 percent to 2.25 percent.

The Fed has raised rates three times this year and is widely expected to do so again in December.

Data released in late October showed the U.S. economy grew at a 3.5 percent annual rate in the third quarter, well above the roughly 2 percent annual growth pace the Fed and many economists regard as the underlying trend.

But Fed policymakers also have begun debating whether the economy has reached a plateau as the stimulus from the Trump administration's $1.5 trillion tax cut package and increased federal spending begin to fade.

The Fed's policy statement did not explicitly take stock of recent volatility in U.S. equity markets that led to a selloff in October, or address the possibility of a slowdown in global growth next year.

There were no updated economic forecasts released on Thursday and Fed Chairman Jerome Powell was not scheduled to hold a news conference.

The Fed's policy decision was unanimous.

Trump says the Federal Reserve has 'gone crazy' by continuing to raise interest rates .
Trump says the Federal Reserve has 'gone crazy' by continuing to raise interest rates."I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy," the president said after walking off Air Force One in Erie, Pennsylvania for a rally.

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