US Federal Reserve raises rates as expected
The central bank risks raising the ire of President Donald Trump as it continues on its path of normalising interest rates
Federal Reserve officials raised interest rates for a third time this year and reaffirmed their outlook for further gradual hikes well into 2019, risking fresh criticism from President Donald Trump. The quarter-point increase boosted the benchmark federal funds rate to a target range of 2% to 2.25%. The move reflected an upbeat assessment of the economy that was identical to the central bank’s last policy statement eight weeks ago, despite concerns over Trump’s escalating trade war. Growth and job gains have been "strong" and inflation remains near the central bank’s 2% target, the federal open market committee (FOMC) said in its statement Wednesday following a two-day meeting in Washington. Barring a negative surprise in the economy, updated "dot plot" forecasts made a December rate hike almost certain, as the number of FOMC officials expecting another increase by year-end grew to a bigger majority of 12, from eight in the previous round of projections in June. In the statement’s o...
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