us fed opens policy meeting interest rate hike likely
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

US Fed opens policy meeting; interest rate hike likely

Arab Today, arab today

Arab Today, arab today US Fed opens policy meeting; interest rate hike likely

Federal Open Market Committee widely expected to increase the benchmark lending rate
New York - Arab Today

The US central bank opened its final two-day policy meeting of the year on Tuesday and was likely to raise the benchmark interest rate despite the absence of inflation.
It would be the third rate hike this year, and possibly the final time Federal Reserve Chair Janet Yellen presides over a policy move since President Donald Trump has opted to replace her in February.
Analysts say the booming labor market, which in recent months has pushed the unemployment rate down to 4.1%, the lowest in 17 years, will outweigh the Fed’s perplexity over why inflation has stayed stubbornly below the central bank’s two percent target.
And with Republicans in Congress working to finalize a unified final version of a massive tax overhaul that will slash corporate taxes, central bankers likely will be thinking about the measure’s potential to add fuel to the economy and finally ignite price increases, economists say.
“Labor markets and prospects of fiscal stimulus outweigh soft inflation” in the rate decision, Barclays said in a Fed outlook note.
With the rate-setting Federal Open Market Committee widely expected to increase the benchmark lending rate, analysts will focus on the wording of the Fed statement and the quarterly forecast for hints about how fast rates are likely to increase next year.
Most economists see three increases again in 2018, but will watch to see if more Fed officials forecast four rate hikes or make any mention of the tax cuts’ likely impact on economic growth.
Even so, “further upward adjustment will likely have to wait until either the tax cut passes or there is sufficient evidence to suggest that inflation is firming faster than anticipated,” Barclays said.
But Jim O’Sullivan of High Frequency Economics said “we expect officials will signal no let-up in tightening in response to a tight and still-tightening labor market.” He is projecting four rate increases next year.
Job gains, while slower than last year, are running at 174,000 a month on average, and companies around the country are reporting difficulty in finding workers to fill open positions.
Normally that would be expected to drive wage gains and fuel price increases. But the Fed’s preferred measure of annual inflation has remained well below the two percent target, slipping to 1.6 percent in October.
The absence of inflation has baffled Fed officials and led to a split among those policymakers who want to go slowly and those who want to hike more quickly before price increases hit the economy.
Yellen will preside over one more FOMC meeting in January, and then Trump’s pick for central bank chief, Fed governor Jerome Powell, is due to take over in early February.

Source:AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us fed opens policy meeting interest rate hike likely us fed opens policy meeting interest rate hike likely

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us fed opens policy meeting interest rate hike likely us fed opens policy meeting interest rate hike likely

 



GMT 10:52 2017 Wednesday ,18 January

Clocks 'failed' onboard Europe's navigation satellites

GMT 23:15 2017 Sunday ,17 December

Mohamed bin Zayed receives President of Montenegro

GMT 11:54 2017 Sunday ,12 November

Nawaz Sharif holds meeting at Jati Umra

GMT 04:54 2017 Saturday ,14 October

Syrians should decide Assad's fate: UN envoy

GMT 00:13 2017 Thursday ,23 November

President expresses grief over martyrdom of Maj. Ishaq

GMT 10:11 2017 Wednesday ,18 October

Venezuela poll results a 'strong message' to US, allies

GMT 13:20 2017 Sunday ,19 February

Actor Bassam Ali rejects works violating ethics

GMT 13:06 2017 Wednesday ,22 February

Super Rugby has plenty to tackle in 2017

GMT 15:03 2017 Saturday ,11 March

Iraqi forces storm Old Mosul from 3 axis

GMT 15:55 2017 Tuesday ,25 July

Morocco’s coach underlines difficulty

GMT 10:49 2016 Saturday ,03 December

Australia's Maxwell fined for 'disrespectful' teammate

GMT 12:58 2017 Sunday ,27 August

Consumers warned against random abattoirs

GMT 12:01 2017 Tuesday ,21 February

Sri Lankan 'Eddie the Eagle' takes snowboarding plunge

GMT 11:14 2012 Monday ,27 August

Myanmar readies for media defamation case

GMT 12:34 2015 Thursday ,27 August

'Fifty Shades of Grey' sequel lines up new director

GMT 06:28 2018 Sunday ,07 January

Golden Globes celebrate the year of the genre movie

GMT 12:39 2017 Friday ,10 March

Kidnappings blight war-scarred Kabul city

GMT 01:35 2016 Wednesday ,30 November

UN: Mosul's poor struggle to get food

GMT 09:23 2018 Monday ,01 January

Putin not to attend UN General Assembly
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday