Fed interest rate: Federal Reserve hikes interest rate another quarter point today

Fed raises interest rates and signals faster hikes on the way

Fed raises interest rates and signals faster hikes on the way

"In view of realized and expected labor market conditions and inflation, the Committee made a decision to raise the target range for the federal funds rate to 1-3/4 to 2 percent", read a portion of a Federal Open Market Committee statement released Wednesday afternoon.

Estimates of longer-run interest rates were unchanged and seen reaching as high as 3.4 percent in 2020 before dropping to 2.9 percent in the longer run. "The Fed is prepared to be quicker about pushing rates higher".

The Fed was widely expected to raise interest rates Wednesday amid strong economic data. Officials penciled in a total of four rate increases for this year, up from a projection of three increases at their March meeting.

"Recent data suggest that growth of household spending has picked up, while business fixed investment has continued to grow strongly", the Fed wrote in its statement Wednesday announcing the interest rate hike. It's the second rate hike under Powell, a Republican appointed to lead the Fed by President TrumpDonald John TrumpWhat you need to know about Tuesday's elections Danny Tarkanian wins Nevada GOP congressional primary Laxalt, Sisolak to face off in Nevada governor's race MORE. At this point, there's been little evidence that wage or price inflation is accelerating.

The policy statement bypassed discussion about the tensions over the Trump administration's trade policies, including a decision two weeks ago to impose tariffs on steel and aluminum imports from the European Union, Canada and Mexico. For 2020, the Fed foresees a median of 3.4 percent. Should the Fed's expectations prove accurate, its policy would then be meant to slow the economy.

In its updated forecasts, the Fed envisions stronger growth this year - 2.8 per cent, up from the 2.7 per cent it predicted in March.

NCAA eases rules on athlete transfers, redshirts for college football
The significance of the rule is a player can appear in those limited number of games at any point in the season. Even with the new rule, conferences could still restrict athletes from transferring within the league.

United States unemployment dropped to 3.8% in May, its lowest level since April 2000 and one of the lowest levels since the second world war. Inflation by the Fed's preferred gauge would hit its 2 percent target this year and edge up to 2.1 percent over the next two years.

A gradual rise in inflation is coinciding with newfound economic strength. Not since 1969 has the jobless rate been lower.

Beginning in 2008 in the midst of the financial crisis, the Fed kept its key rate unchanged at a record low near zero for seven years. It then raised rates once in 2015, once in 2016, three times in 2017 and now twice this year.

After keeping interest rates low for years to boost growth, the central bank is now moving rates back to what economists say is a neutral position. While the national economy appears to be on solid ground for 2018, the Fed must now consider how growing global trade disputes could slow USA growth.

The economic expansion has survived for nine years and is now the second-longest in history. 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.

Recommended News

  • Jada Pinkett Smith Opens Up About Suicidal Thoughts

    Jada Pinkett Smith Opens Up About Suicidal Thoughts

    I looked at him and said, 'You had sex.' And he ran into the bathroom. Red Table Talk's latest episode is available now on Facebook Watch.
    Fyre Festival Founder Billy McFarland Arrested On More Fraud Charges

    Fyre Festival Founder Billy McFarland Arrested On More Fraud Charges

    The document continues on to explain that McFarland, "will face criminal charges on top of those to which he already pled guilty". Back in March , Billy McFarland pled guilty to two counts of federal wire fraud in connection to the Fyre Festival scandal.
    Where Is Minneapolis Raccoon Now? The Little Climber Has Been Safely Captured

    Where Is Minneapolis Raccoon Now? The Little Climber Has Been Safely Captured

    A raccoon stranded on the ledge of a building captivated onlookers overnight after it started scaling an office building. The raccoon's story went viral as office workers posted photos of its progress on Twitter over the course of two days.
  • USA  reveals ZTE settlement details, ban still in place

    USA reveals ZTE settlement details, ban still in place

    The Chinese company has been accused of violating USA sanctions by selling sensitive equipment to both North Korea and Iran. ZTE is not allowed to take any action or make any public statement, even indirectly, denying any of the allegations.
    Eid-Al-Fitr will most likely be June 15, says IAC

    Eid-Al-Fitr will most likely be June 15, says IAC

    According to Met Office, the new moon of Shawwal, 1439 AH will be born on crossing conjunction point at 00-45 PST on June 14. Saudi Arabia's King Salman also issued a directive last Tuesday to extend this year's Eid Al Fitr holiday.
    Heavy rain, lightning, and gusty winds possible

    Heavy rain, lightning, and gusty winds possible

    Wednesday looks mostly dry, but scattered rain chances return to the forecast Thursday and continue for your Friday . We can expect mostly cloudy skies with perhaps some sunshine breaking through the clouds later this afternoon .
  • Fed hikes interest rates again, raises outlook for more increases in 2018

    Fed hikes interest rates again, raises outlook for more increases in 2018

    The Fed anticipates that inflation will overshoot its 2% target this year; in March, officials saw that happening only in 2020. On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 per cent.
    Trump wants to stop provocative 'war games' with South Korea

    Trump wants to stop provocative 'war games' with South Korea

    President Trump's meeting with Kim Jong-un affects Koreans living in Kansas who fear for the safety of their loved ones in Asia. There is a " huge difference between the two ", the anonymous official said.
    World Blood Donor Day on June 14

    World Blood Donor Day on June 14

    In fact, for the past four years, new Red Cross donors have declined by about 80,000 each year. Transfusion of blood and blood products helps save millions of lives every year.
  • The Last of Us Part II Gameplay Trailer Unveiled

    The main protagonist, Ellie, stealthily moves about, eliminating enemies until discovered, requiring her to flee. On top of that, enemies appear to be more coordinated now, and Naughty Dog's overhauled engine looks wonderful .
    Farrah Abraham arrested at Beverly Hills Hotel

    Farrah Abraham arrested at Beverly Hills Hotel

    " Farrah will return and continue to focus on her businesses and her daughter which is her #1 priority", read the statement. HollywoodLife will keep you updated as more information becomes available.
    Tony Award Windfall to Boost 'The Band's Visit'

    Tony Award Windfall to Boost 'The Band's Visit'

    Another member of the show's cast, Nathan Lane , picked up the Best Featured Actor in a Play accolade. She said she was happy to be in a production that "celebrates diversity and individuality".

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.