Caspian Energy Journal Caspian European Club
Thursday, 27 September 2018 13:00

Federal Reserve raises interest rates again

Federal Reserve raises interest rates again

In view of realized and expected labor market conditions and inflation, the Federal Open Market Committee of the US Federal Reserve System decided to raise the target range for the federal funds rate by 0.25%, to a range of 2%-2.25%, Caspian Energy News ( reports with reference to the Federal Reserve System (Fed).

It stands to mention that the move marks the bank's eighth rate rise since 2015, continuing its policy of gradual rate rises.

According to BBC, US gross domestic product grew at an annual pace of more than 4% in the second quarter of this year, and the unemployment rate continues to hover below 4% - near historic lows.

Price inflation, which had been sluggish, has also started to pick up, hitting the Fed's 2% target - and exceeding it by some measures.

Fed officials now expect the US economy to grow by 3.1% this year - faster than the 2.8% forecast in March, according to projections released after the meeting. Their predictions for inflation remained unchanged at around 2%.

The forecasts show Fed officials expect about three rate rises in 2019 and one more in 2020, which would lift the bank's important federal funds rate to about 3.4% that year.

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