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OffbeatFed holds rates steady, says economy remains on track

21:30  08 november  2018
21:30  08 november  2018 Source:   reuters.com

U.S. job growth seen accelerating; strong annual wage gain expected

U.S. job growth seen accelerating; strong annual wage gain expected U.S. job growth likely rebounded in October

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

WASHINGTON (Reuters) - 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 track for another two hikes this year even as President Donald Trump has ramped up criticism of its push to

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."

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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 track for another two hikes this year even as President Donald Trump has ramped up criticism of its push to raise rates .

The Federal Reserve is expected to leave interest rates unchanged at its August meeting. But the statement they issued keeps the Fed on track to raise rates next month and again in December In their statement on Wednesday, Fed officials said the overall inflation rate and the rate that excludes

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.

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