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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

Fed raises rates, sees at least 3 more years of economic growth

  Fed raises rates, sees at least 3 more years of economic growth The Federal Reserve raised interest rates Wednesday, as expected, and forecast three more years of economic growth as the U.S. central bank left its policy for steady rate rises in place.In a statement that marked the end of the era of accommodative monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent.

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."

U.S. central bank chief issues warning on Canadian housing without even realizing it: Don Pittis

  U.S. central bank chief issues warning on Canadian housing without even realizing it: Don Pittis U.S. Federal Reserve Chair Jerome Powell says the strong U.S. economy needs more rate hikes, but in explaining why, he unintentionally offered a warning for Canadians with big mortgages.The world's most powerful central banker has confirmed that U.S. interest rates are on the way up — and if history is any guide, Canadian rates are going up with them.

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.

U.S. Fed lifts rates for 4th time this year but sees fewer hikes.
U.S. Fed lifts rates for 4th time this year but sees fewer hikes

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