Fed Raises Interest Rates, Signals 2 More Hikes This Year

Stephen Stanley chief economist at Amherst Pierpont and Bob Browne Northern Trust CIO discuss the

Stephen Stanley chief economist at Amherst Pierpont and Bob Browne Northern Trust CIO discuss the

Being the second increase of the year, the hike signalled that the US Federal Reserve will be more aggressive about rate increases this year.

At his post-meeting press conference, Fed Chairman Jerome Powell also announced that he will hold a press conference after every policy meeting, rather than the current quarterly schedule.

The US Federal Reserve has voted to raise the target for its benchmark interest rate by 0.25%.

In another slight change of language - something sure to catch the attention of Fed watchers - it said "further gradual increases" in the key rate "will be consistent with sustained expansion of economic activity, strong labour market conditions and inflation near the Committee's symmetric two per cent objective over the medium term".

Merkel open to European Union migration reform, cautious on eurozone
At the summit, Trump refused to endorse a group deal, saying other members use unfair trade practices against the United States. She added that Berlin would continue its dialogue with the United States despite difficulties.

Art Hogan, chief market strategist at Wunderlich Securities, described the Fed's decision as "moderately hawkish", but said it was not much different than expected. "This is a rare occurrence where the chairperson can help influence and shape the overall dot plot message", Ruskin, the global head of G10 FX strategy, said in a preview.

While a few items remain on the USA central bank's wish list, such as bigger gains in wages and productivity, the main goals of stable prices and full employment are effectively met.

The central bank's new median forecast projects the Fed's benchmark rate at 3.1 percent by the end of 2019, up from 2.9 percent in the previous forecast. At the same time, they project the unemployment rate to fall to 3.6 percent this year, down from earlier projections of 3.8 percent. It also forecast an even lower unemployment rate of 3.5% for 2019 and 2020.

The Fed's preferred measure of inflation, which strips out food and energy prices, climbed in May to 2.2% and registered the biggest annual jump in six years. Wednesday's statement said the economy is "rising at a solid rate". Mortgage loans maintained its steady pace of growth at 4.7% YoY.

When India qualified for the FIFA World Cup, but did not play!
He made his debut in the Argentinian league in 2007 and officiated his first worldwide match in 2010. Reuters contributed reporting to this article.

The US rate hikes are already sending threatening ripples through other economies as capital flows towards the US and the US dollar strengthens. After years in which the economy expanded at roughly a tepid 2 per cent annually, growth could top 3 per cent this year. The BoC will meet in July with a growing probably of a rate hike announcement. While the national economy appears to be on solid ground for 2018, the Fed must now consider how growing worldwide trade disputes could slow USA growth.

All three central banks (and the Bank of England) aim for inflation of about 2%, but in Japan and the Eurozone prices are rising substantially more slowly.

Eurozone growth is slowing down and rising political uncertainty as evidenced by the formation of the Italian government will give the European Central Bank food for thought.

"By just tapping the brakes more quickly, but not harder, the Fed is showing it's willing to let the economy and the expansion run", said Robert Frick, corporate economist with Navy Federal Credit Union.

Ex-NBA Star Rodman Bursts Into Tears After Historic Trump, Kim Handshake
Last week, Trump told reporters that it would be easy to tell if a deal was possible with Kim in the first minute of the meeting. Pushed about whether USA troop numbers would be on the agenda in Singapore , Mattis replied , "I don't believe it is".

Fast-forward to April of this year when data showed that USA job openings jumped to a record high, far outpacing hiring.

Latest News