Wednesday, 12 December, 2018

Fed raises interest rates in Powell's debut

Fed raises interest rates in Powell's debut Fed raises interest rates in Powell's debut
Jean Garcia | 22 March, 2018, 01:48

Newly-installed Fed Chairman Jerome Powell presided over his first meeting, which raised the federal funds rate to 1.5-1.75 percent. It also said it will keep shrinking its bond portfolio.

"I think we could easily go to four, because if you look at the dot plot, all they needed was one more person to up their estimate", said Dan North, the chief economist at Euler Hermes North America, referring to the chart of FOMC members' forecasts.

Speaking to Congress last month, Powell said his "personal outlook" on the economy had strengthened since December, when the Fed's policymakers collectively forecast three rate hikes for 2018, the same as in 2017. Those higher estimates may reflect the expected impact of additional government spending. The US economy grew at an annualised rate of more than 3% during some quarters a year ago, while the unemployment rate is hovering at 4.1% - the lowest since 2000.

If economic growth does pick up and the job market remains healthy, the Powell Fed is viewed as likely to accelerate its rate hikes, from the three it projected in December to four this year.

The Federal Reserve on Wednesday lifted US interest rates as expected, enthusiastic about the road ahead, saying the economic outlook had strengthened in recent months. In his first meeting as Fed Chairman, Jerome Powell chose to have his cake and eat it, too: He sounds upbeat, tough, and hawkish about next year but cautious about this year.

Unemployment appears on course to fall to rarely-seen levels that tend to come with "elevated risks of imbalances, whether in the form of high inflation in earlier decades or of financial imbalances in recent decades", Fed Governor Lael Brainard said, alluding to the dot-com and housing bubbles.

10 things you might not have know about St. Patrick's Day
Patrick's Day with its 257th parade that includes 150,000 marchers, around 2 million spectators and lots and lots of green. In the U.S. city of Chicago, the Chicago River was dyed a bright shade of green, kicking off the city's St.

By the end of 2019, the Fed expects its benchmark rate to hit 2.9% vs. a prior 2.7%.

But because inflation has run below the Fed's target since they formally adopted it in 2012, markets don't have a good read on how policy makers would chart interest rate policy when inflation is above the target.

USA indexes lifted following the announcement, with the Dow Jones rising as much as one per cent.

Some investors had speculated that Powell might move to impose his mark on the central bank by indicating a faster pace of rate hikes for 2018. At the December meeting, Fed officials estimated 2.5 percent economic growth this year ahead of the passage of Republican tax cuts and plans to increase government spending. Fed officials also increased their expectations for GDP growth in 2019 to 2.4% from 2.1% in December a year ago.

"Trade policy has become a concern going forward for that group", the chairman said, referring to business leaders. "But if we see retaliation, and significant trade disruptions, it's a different order of magnitude (which) could begin to affect global growth forecasts", said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

Recommended

Liverpool increase asking price for Mohamed Salah Liverpool increase asking price for Mohamed Salah Speaking to Suddeutsche Zeitung ( via Calciomercato ) this week, the Liverpool player said: "I do not want to exclude any option, I don't know what I will do from next summer".

Informal meeting useful to carry forward WTO mandate: Azevedo Informal meeting useful to carry forward WTO mandate: Azevedo A negotiator said duty hike was the second-most discussed issue at the meeting, but it was clearly the flavour of the season.

John Oliver Topped Mike Pence on Amazon With His Gay Bunny Book John Oliver Topped Mike Pence on Amazon With His Gay Bunny Book Oliver's new children's book, "A Day in the Life of Marlon Bundo ", is now the No. 1 best selling book on Amazon . The late night host's book also would be "telling" the real author, Charlotte Rose Pence, "to go f**k" herself.

Instagram expands its shoppable posts feature to eight new countries Instagram expands its shoppable posts feature to eight new countries Shopping via Instagram is now available in Australia, Brazil, Canada, France, Germany, Italy, Spain and the U.K. A new feature like this will undoubtedly drive tons of engagement and keep users in the app longer.

Stormy Daniels fires back on Twitter: 'I am NOT going anywhere' Stormy Daniels fires back on Twitter: 'I am NOT going anywhere' Though he added that he "can only speak for myself". "In fact, I have never spoken to her", Cohen told the magazine. The 39-year-old is arguing that the hush agreement is void because Trump did not actually sign it.

World's last male northern white Rhino 'Sudan' dies World's last male northern white Rhino 'Sudan' dies Of all types of rhinoceros, the white rhinoceros , which consists of two sub-species (northern and southern), are the most social. The world's last male northern white rhino has died leaving only two females left to save the species from extinction.

So Just How Badly Does Francis Ngannou Want to Fight Brock Lesnar? So Just How Badly Does Francis Ngannou Want to Fight Brock Lesnar? Though this would be an incredibly interesting contest, Lesnar getting back into the Octagon is far from guaranteed at this point. Ngannou continued to call out Lesnar, nearly pleading with the 40-year-old to make the dream match happen.

Saudi Crown Prince to Visit White House Tuesday Saudi Crown Prince to Visit White House Tuesday Women were not allowed to drive, vote, along with a lengthy list of rights that are viewed "basic" in other countries. Trump and the crown prince underscored the strength of US-Saudi ties which suffered under the Obama administration.

New York Jets: What their big trade says about the quarterbacks New York Jets: What their big trade says about the quarterbacks The Jets gave up their first round selection and both second round picks in 2018 and their 2019 second-round pick. General manager Chris Ballard and Co. did just that, taking advantage of a quarterback-needy team in the process.

American Idol: Audriana Bolton Sings Mariah Carey In Daisy Dukes American Idol: Audriana Bolton Sings Mariah Carey In Daisy Dukes The drama has been never-ending. "How did you get that voice and why are you a property administrative manager", Katy Perry asked. Katy embraced the tourist look with her bum bag while enjoying a little downtime in Brazil, after flying in for a concert.

Penny Hardaway agrees to be UofM basketball coach Penny Hardaway agrees to be UofM basketball coach It was at Memphis East where Hardaway coached prize recruit James Wiseman, who he could ultimately persuade to attend Memphis. Memphis went 21-13 this past season, but failed to make the NCAA tournament for the fourth straight year.

PGA works on security in Austin in wake of bombings PGA works on security in Austin in wake of bombings On Sunday night, a device that police believe used a tripwire exploded in a residential area and injured two men, police said. David's South Austin Medical Center, the two victims were taken there for treatment and are in good condition.

Roger Federer, Martin del Potro enter semis at Indian Wells Roger Federer, Martin del Potro enter semis at Indian Wells World number eight Del Potro , though, is relishing Sunday's encounter against the evergreen 36-year-old. The ball was called out but Coric challenged and after the video review the original call was confirmed.

British foreign minister accuses Russia of stockpiling nerve agent British foreign minister accuses Russia of stockpiling nerve agent Now one member stands accused of using chemical weapons on the sovereign soil of another member. In remarks carried by the RIA Novosti news agency, Lavrov said the move would come "soon".

Manila hotel fire leaves at least 4 dead, 2 trapped Manila hotel fire leaves at least 4 dead, 2 trapped Also, in 2017 a fire swept at a shopping mall and a call centre in the southern city of Davo, 38 people were killed. Yu said about 20 more people were trapped inside the hotel as rescuers scoured the building.