Washington — The US Federal Reserve kept its benchmark interest rate unchanged on Wednesday and announced the gradual end to a crisis-era stimulus programme in a sign the economy is on sound footing. The Fed statement following its two-day policy meeting noted that the devastation caused by Hurricanes Harvey, Irma and Maria are "inflicting severe hardship" on communities. However, the central bank said the economic impact of the storm is likely to be felt only in the near term. It cited past experience which has shown that "the storms are unlikely to materially alter the course of the national economy over the medium term". Higher prices for petrol and some other items "in the aftermath of the hurricanes will likely boost inflation temporarily". However, 12-month inflation is still expected to remain below the Fed’s 2% goal in the near term, stabilising at the target rate only in the medium term. The Fed gave few hints on the likelihood of a third rate increase this year, as the sta...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.