Fed maintains interest rates amid inflation concerns

Fed maintains interest rates amid inflation concerns

Several US central bankers have recently said that they are expecting the changes, including the estimated 1.5 trillion Dollars decreases in corporate and physical taxes, support the economy, increasing the costs of business and households.

The US Federal Reserve on Wednesday kept interest rates unchanged, but said inflation likely would rise this year, bolstering expectations borrowing costs would continue to climb under incoming central bank boss Jerome Powell. The Fed said Mr. Powell will begin his term as FOMC chairman on Saturday and is scheduled to be sworn in as chairman of the Fed board of governors on Monday. "They do want to at least confirm the market's expectations for a March rate hike", said Tom Simons, chief money market economist at Jefferies.

The U.S. economy is strong enough to absorb more rate hikes, based on the Fed's latest assessment.

Fed officials have pencilled in three moves this year and investors see more than a 90 per cent chance that they would hike it at their next meeting of the Federal Open Market Committee on March 20-21.

The Fed will release a statement following its two-day meeting at 2 p.m. ET Wednesday.

The FOMC upgraded its outlook for inflation on a 12-month basis saying that they expected it to increase and stabilise around the 2% level this year.

"Earnings are going very well, it demonstrates that the dramatic cut in corporate taxes are helping every one in terms of profitability", said Stephen Massocca, Managing Director at Wedbush Securities in San Francisco.

Besides the Fed, investors also looked ahead to key US economic data due later in the session for fresh clues on the likely trajectory of monetary policy in the months ahead.

The Fed's policy statement repeated that officials see the near-term economic risks as "roughly balanced", meaning the prospects of growth that is either stronger than anticipated or weaker than anticipated are about the same.

This is the first meeting of the committee in 2018 and market participants focus on the Fed's decision on interest rates. "If the market expectation of the Fed Funds rate continues to rise beyond ~2.5%, then the higher interest rate cavalry may finally come to the dollar's rescue".

Janet Yellen may be leaving the Federal Reserve, but her new position as a distinguished fellow at the Brookings Institution will ensure she remains highly active in the debate over USA interest rate policy.

The U.S. central bank forecasts three rate hikes this year, including one at its March policy meeting.

Policy makers said they would continue to "carefully monitor" inflation as the Fed tries to meet its 2% target - the level it considers healthy for the US economy.

January sales of US Mint American Eagle gold coins fell 50 percent from the same month a year earlier, the slowest January sales in 10 years, and January silver coin sales fell to the lowest since 2009, government data showed on Wednesday. However, neither of them get votes this year, due to the Fed's rotational system.



Related Posts

Pelosi: Nunes memo is 'a total misrepresentation'
If Republican lawmakers contend that someone deliberately undermined that process, then "releasing a memo is nearly farcical", Mr. McCabe's resignation came hours before the House Intelligence Committee voted to approved the public release of the report.

Super Bowl security includes off-site screening, more police
"Our security apparatus is in place.it's very robust and intentional", he said, adding, "I think Philadelphia fans are great". Nobody's really given me a chance, but these guys gave me a chance. "Now I don't think there's any wasted moments in the day".

Liverpool v Tottenham: The three key battles
But perhaps, in order to win away at the bigger sides, you need to stop thinking of them as bigger sides. However, Spurs are now on a streak of four consecutive defeats in away games to Top Six rivals.

NKorean athletes arrive in SKorea for Olympics
Gangneung is the sub-host city where all ice sports will be held during the February 9-25 Olympics. He reiterated his pledge to support those who could not take part in next month's Games.

Jurgen Klopp questions criticism of Jordan Henderson after Liverpool captain's return
However, Liverpool were also in the mood and grafted until they regained some of their precision passing and adaptable attacks. Predict the score for this match and the rest of this round's Premier League fixtures in our Predictor game .

North Korea cancels cultural event with South over 'media bias'
North Korea was somewhat of an outlier on the list, which, aside from Venezuela included only Muslim-majority countries. Bush was dropped is unclear, but differences in opinion on issues such as North Korea, and the South Korea-U.S.

Economy added 200000 jobs in January
Numerous economic data points that preceded the BLS report on Friday pointed to an economy that was near full employment. Despite briefly accelerating in 2015, wage growth has been tepid in recent years and 2017 was no different.

The Writer of 'Black Panther' Comic Wasn't Invited to the Premiere
Compton-based rapper Kendrick Lamar added to the excitement today when he tweeted out information on " Black Panther: The Album ". Black Panther is positioned to be a very influential and impactful movie not only in the MCU, but in all of Hollywood.

Patriots should be banned from the Super Bowl
Again, while I understand that point of view/opinion, I saw something in last year's Super Bowl that amazed me. White is just one of the many Patriots running backs who can be called upon in any game.

Kanye West Clones Kim Kardashian For New Fashion Campaign
Perez Hilton even shared, "From Paris Hilton's closet organizer to her boss!" And, besides, a little mutual promotion can't hurt. Yeezy lovers can preorder the Season 6 pieces , including $120 bike shorts and $300 sweatpants, online now.

© 2015 Stocks News Daily. All Rights reserved.