After the fourth increase in the Federal funds rate in 2018 and a slightly less optimistic forecast for 2019, it is gone on the stock exchanges in the United States down. The Dow castle in New York to a new low for 2018. Also, the Nasdaq and the S&P 500 fell to a low for the year. “We see some signs of tightening,” said the head of the US Central Bank and Chairman of the Federal open market Committee, Jerome Powell. This is since September.
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The US economy has an important leading role in the world economy. The economists of the International monetary Fund (IMF) had already said in October, a slightly slowdown in growth in the world economy for 2019.
Central Bank of a slowdown in the economic growth of
According to the Fed also adjusted its forecast for economic growth. For the current year, the Central Bank revised the forecast by 0.1 points to 3.0 percent in the coming year, the world’s largest economy will grow by only 2.3 percent. In the past, the expectation had amounted to 2.5 per cent. In the case of Inflation, in addition to the labour market one of the most important indicators for the monetary policy of the Fed, has not been reached the target of about two percent.
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The Federal Funds Rate, the interest rate, to lend to the banks with each other overnight money rises, according to the decision Wednesday by 0.25 points to a Target range of 2.25 to 2.5 percent. The decision of the open market Committee of the Federal Reserve had been expected in this Form largely in the markets, even if it had been up to the last residual doubts.
independence of the Central Bank is Trump thorn in the side of
US President Donald Trump had exercised considerable pressure on the actually, regardless of the policy, and active Central Bank. Trump believes that by unnecessarily high interest rates, the US economy stalled. Powell said, political considerations played no role in the determination of the monetary policy stance. “No one will deter us from the right way to go,” said Powell.
It was the ninth interest rate is step the Fed since 2015. Powell signaled a slower rate of normalisation for 2019 of only two increases to 2.75 to 3.00 percent at the end of next year. Most recently, the Fed was still expected to of three Interest rate hikes in the next year.
kng / DPA