Federal Reserve raises interest rates

After Nine Years Of US Recovery, Fed Sheds Anxieties

After Nine Years Of US Recovery, Fed Sheds Anxieties

Federal Reserve Chair Jerome "Jay" Powell said job gains are boosting income and confidence, while foreign expansion and tax cuts support additional growth.

They lifted the federal funds rate, which helps determine rates for mortgages, credit cards and other borrowing, to a range of 1.75% to 2%.

The Fed now sees gross domestic product growing 2.8 percent this year, slightly higher than previously forecast, and dipping to 2.4 percent next year, unchanged from policymakers' March projections.

Powell was speaking at a press conference after the Fed announced its decision to raise interest rates. The statement the Fed issued today after its latest policy meeting ended suggested that he does.

More news: Atletico Madrid's Antoine Griezmann Makes Big Decision On Future

This hike, which was widely expected, is the Fed's second of 2018, and the central bank signalled it is likely to do two more increases by the end of this year. Economic activity is projected to expand 2.4% in 2019, unchanged from the previous forecast; finally, the economy is expected to grow 2.0% in 2020, unchanged from the previous forecast.

We are closing into the FOMC's June policy decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 8 major banks along with some thoughts on the future course of Fed's action.

In its updated forecasts, the Fed envisions stronger growth this year, with the economy expanding 2.8 percent, up from the 2.7 percent it predicted in March. Unemployment is 3.8%, the lowest since 2000, and inflation is creeping higher. The projections show inflation rising 2.1% for the next three years.

Along with rising interest rate expectations. Consumer and business spending is powering the economy, in part a result of the tax cut President Donald Trump pushed through Congress late previous year. Not since 1969 has the jobless rate been lower. It then raised rates once in 2015, once in 2016, three times in 2017 and now twice this year.

More news: Justify Makes History for Bob Baffert

Fed officials have begun to debate publicly how close the economy is to overheating.

And a majority of policy makers said they now expect a total of four interest rate increases this year. Canada, the European Union and Mexico have all pledged to retaliate with tariffs on USA imports, which some studies show could cost the US close to 200,000 jobs.

A global trade war would risk cutting into US economic growth by depressing American export sales and raising inflation by making consumers and businesses pay more for imports.

More news: Tuesday forecast: Cooler but still hot and humid

Recommended News

  • Kitchen towels can cause food poisoning

    Kitchen towels can cause food poisoning

    The research was presented at the annual meeting of the American Society for Microbiology in Atlanta, Georgia, in the US. About 14 percent grew Staphylococcus aureus , or staph, a bacterium that's sometimes found on people's skin.
    Trump's Economic Adviser Blames Trudeau for 'Betrayal' Before North Korea Talks

    Trump's Economic Adviser Blames Trudeau for 'Betrayal' Before North Korea Talks

    A spokeswoman for Trudeau, Eleanore Catenaro, declined to comment on Navarro's acknowledgement of a mistake. Trudeau said at the press conference that Canada would not be "pushed around" by the United States.

    Raccoon captivates internet with Minnesota skyscraper climb

    The skyscraper-scaling raccoon doesn't just have people keeping track to see what the creature's ultimate fate will be, though. There is a live trap on the roof of the building with some very aromatic cat food they hope will lure the raccoon to safety.
  • Salah remains doubtful for WCup opener

    Salah remains doubtful for WCup opener

    He took part in the team training session on Wednesday but did not engage in any pieces of training that involves the ball. However, I can not confirm today that he will play in the first match.
    Queen’s Birthday Honours List shows record 15 percent increase in female recipients

    Queen’s Birthday Honours List shows record 15 percent increase in female recipients

    The brother of aid worker David Haines, who was murdered by Islamic State extremists, is made an OBE for his work against terrorism.
    Ex-Diplomat Blinken: Kim Jong Un 'Got Everything He Wanted'

    Ex-Diplomat Blinken: Kim Jong Un 'Got Everything He Wanted'

    The voiceover framed Kim as a potential "hero of his people" with the chance to achieve "prosperity like he has never seen". President and a North Korean leader have met-makes this a historic, if somewhat weird , moment.
  • World Cup Returning to US After North American Bid Beats Morocco

    World Cup Returning to US After North American Bid Beats Morocco

    Cordeiro, who was co-chair of the bid, spent much of his first few months in office traveling the world, lobbying. According to Yahoo , the bid called for each of the three host nations to play in the opening matches .
    DJ wins St. Jude, reclaims No. 1 ranking

    DJ wins St. Jude, reclaims No. 1 ranking

    Johnson has been dominant in multiple aspects of his game this season. "I feel like my game is in good shape", he said. Johnson tapped in for birdie, followed with a two-putt birdie at the par-5 third and added birdies at Nos.
    Fallout 76 Trailer, Release Date, and News

    Fallout 76 Trailer, Release Date, and News

    One such player by the name of Andrew Ngeyen has even started a position to stop Bethesda from trying out something new. That makes your playable character one of the first to step foot back into the world to attempt to rebuild society.
  • Wonder Woman 2: Title, Images, And The Return Of Steve Trevor Revealed

    Wonder Woman 2: Title, Images, And The Return Of Steve Trevor Revealed

    Welcome to Wonder Woman 1984 , the Warner Bros. sequel that's now lensing across parts of Washington D.C. with Chris Pine in tow. Warner Bros. did not specify how Steve Trevor (who seemingly died in the first film set in World War I) is returning.
    Neymar and Gabriel Jesus confident Brazil will win the World Cup

    Neymar and Gabriel Jesus confident Brazil will win the World Cup

    Of the 23 players that Tite has selected only five remain from the squad that was so severely dumped from the competition in 2014. Tite's squad is brimming with world class talent, and in Neymar , they possess a player capable of pure magic.
    Macedonia makes name change deal with Greece

    Macedonia makes name change deal with Greece

    European Council President Donald Tusk tweeted his support for the agreement: "Thanks to you the impossible is becoming possible". It was admitted to the United Nations as the Former Yugoslav Republic of Macedonia , because of Greece's objection.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.