Federal Reserve raises interest rates

Credit AP  JACQUELYN MARTIN				“The economy is doing very well. Most people who want to find jobs are finding them,” Fed chief Jerome Powell said Wednesday

Investors will be listening to Federal Reserve chair Jerome Powell's second press conference as leader of the USA central bank for clues on how the institution is factoring trade conflicts and global tensions into its strategy as it continues on the path toward policy normalization.

Two additional rate hikes are predicted this year, for a total of four. And that means higher interest rates on plastic.

He added that continued steady rate increases would nurture the expansion, as the Fed approaches a sort of sweet spot with its employment and inflation goals largely met, the economy withstanding higher borrowing costs and no sign of a spike in inflation.

The federal funds target rate, which is now between 1.75 and 2 percent, is the highest it's been in almost a decade, indicating that the nation's central bank has confidence the economy will continue to expand.

"The labour market is getting tighter, and price pressures are picking up", said Greg McBride, chief financial analyst at Bankrate.com.

The ongoing economic expansion coupled with solid job growth has pushed the Fed to raise rates seven times since late 2015, rendering the language of its previous policy statements outdated.

The Fed announced the rate rise at the close of a two-day meeting in Washington.

Amazon Prime discounts for Whole Foods stores spread to 10 more states
The perks program includes an extra 10% off sale items and rotating deals for members of Amazon's $119-a-year Prime membership. It's worth noting that the Prime member savings are also available in Whole Foods Market 365 stores nationwide.

The latest rate increase was in line with investors' expectations ahead of the release of the policy statement. The Fed's new projection for the pace of rate hikes shows four this year, three in 2019 and one in 2020.

At a news conference, Powell sought to portray the Fed's actions as evidence mainly that the economy is doing well and not that the central bank is eager to accelerate its rate increases.

Though rates are now roughly positive on an inflation-adjusted basis, the Fed still described its monetary policy as "accommodative", with gradual rate increases likely warranted as a sturdy economy enters a 10th straight year of growth. The most immediately affected will be credit-card interest rates, which are subject to near-instantaneous revision to track the federal funds rate.

USA unemployment dropped to 3.8% in May, its lowest level since April 2000 and one of the lowest levels since the second world war.

The Fed offered an improved forecast for unemployment this year, lowering its forecast to 3.6%.

This marks the highest level of interest rates in the United States since 2008, although the benchmark rate remains below the historical average.

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. 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.

Related News:

  • Royal visit to NZ confirmed

    Royal visit to NZ confirmed

    However, according to the MirrorOnline's lip reader, Meghan wasn't feeling quite as cool, calm and collected as she appeared. And the thousands in attendance certainly appreciated Meghan and Kate's exemplary style, cheering and waving in approval.
    Id-El-Fitr: FG declares Friday, Monday public holidays

    Id-El-Fitr: FG declares Friday, Monday public holidays

    Following the sighting of the moon, people seen greeting each other and began celebrating Eid. The statement asked all and sundry to observe the day as such throughout the country.
    Apple Blocks Crypto Mining Apps On Its Products

    Apple Blocks Crypto Mining Apps On Its Products

    It can generate excessive heat and put a serious strain on the resources of a device - all the things Apple wants to restrain. Cloud-based mining allows the user to take advantage of a shared processing power which is generally run from data centers.
  • United Bid Selected to Host the 2026 FIFA World Cup

    United Bid Selected to Host the 2026 FIFA World Cup

    The 2026 tournament will be the first hosted by multiple countries since the 2002 World Cup in Japan and South Korea. Expect it to add a World Cup semifinal to its resume.
    Brazil´s Fred suffers ankle injury

    Brazil´s Fred suffers ankle injury

    Five times World Cup winners Brazil have been using Tottenham Hotspur's training ground to prepare for the tournament. Castro's previous tweet described how the 25-year-old had appeared to be in "a lot of pain" following the incident.
    Moon Says Denuclearization of N.Korea Could Take Years

    Moon Says Denuclearization of N.Korea Could Take Years

    But the last three presidents secured commitments from North Korea on denuclearisation that North Korea later reneged on. The 1950-53 Korean War ended with an armistice and a state of war still technically exists between the two Koreas.
  • Defeat devices reportedly found in diesel Daimlers

    Defeat devices reportedly found in diesel Daimlers

    A device can be classified as illegal if exhaust filtering systems are deactivated too early or without good reason. It's now unclear how many models in the United Kingdom are impacted.
    Wilder agrees to heavyweight showdown with Joshua

    Wilder agrees to heavyweight showdown with Joshua

    AJ would want Wembley for a fight of this magnitude but if we do October or November you can't really do that outdoors. Complicating matters is that Joshua is already due to take on WBA mandatory challenger Alexander Povetkin.
    Capitals' coach says Cup repeat on the mind

    Capitals' coach says Cup repeat on the mind

    Prior to Game 1 of the Stanley Cup Final, Fallon gave both the Capitals and Golden Knights the "superlatives" treatment . Conn Smythe Trophy victor Alex Ovechkin and owner Ted Leonsis have the Stanley Cup at the tail end of the parade.
  • NASA rover falls silent as gigantic dust storm envelops Mars

    NASA rover falls silent as gigantic dust storm envelops Mars

    NASA has continued to track the storm from orbit and the surface. "They can crop up suddenly but last weeks, even months". That's because it may not be able power its electronic circuits enough to prevent severe cold on Mars from damaging them.
    IHOP flips over burgers, changes ‘p’ to ‘b’ in logo

    IHOP flips over burgers, changes ‘p’ to ‘b’ in logo

    It's also a great place for lunch and dinner. "Burgers are a quintessential menu item", says IHOB district manger Chris King. Darren Rebelez, the president of IHOP , explained the re-branding and put restaurant-goers at ease in a statement.
    Actress Rose McGowan indicted on cocaine charge in Virginia

    Actress Rose McGowan indicted on cocaine charge in Virginia

    Actress and activist Rose McGowan will stand trial in January on a charge of felony cocaine possession in Virginia. On October 30, McGowan first publicly responded to the existence of the warrant on Twitter.


Most liked

White House to block Congress from stopping ZTE deal
Little of that happened, however, and the Commerce Department enacted a seven-year suspended ban against ZTE in retaliation. On June 1, Reuters exclusively reported on the monetary penalty and other terms demanded to reverse the ban.

Microsoft working on video game streaming service
The rumor mill has been activated once more, and this time the talks are about Microsoft's next-generation console. Sony has been able to consistently deliver blockbuster exclusive games that has helped boost its market share.

Half of Americans approve of Trump's handling of North Korea - Reuters/Ipsos poll
So, we want the president to be successful in gaining a way in which the Korean Peninsula will be nuclear-free. Ultimately, that may end up being the only option that the United States has short of war.

Losing Owner Ignites a Triple Crown Brouhaha
There were no surprises awaiting his rivals when Hall of Fame trainer Bob Baffert entered him for the Belmont last Monday. Baffert then threw him right into the Grade I Santa Anita Derby , which he won by 3 lengths.

Donald Trump accuses OPEC of driving up oil prices
USA ally Saudi Arabia remains OPEC's most powerful member - with enough production capacity to manipulate global supplies. Using drilling advances such as fracking, operators in Texas and North Dakota have pushed US production higher.

Farrah Abraham Arrested for Beverly Hills Hotel Fight
Farrah Abraham released a statement following her arrest for misdemeanor battery and trespassing on Wednesday, June 13. In this video, obtained by TMZ , she repeatedly yells, "Go f**k yourself" to the officers surrounding her.

NCAA passes 4-game redshirt rule; what it means for Syracuse football
As the attitudes toward the rights of student-athletes continue to loosen, these rules followed suit. Once an athlete's name is in the database, other school are free to make contact.

Three killed in Saudi Arabia following Houthi missile attack
The United Nations fears that a battle in Hodeidah could be devastating for the estimated 600,000 people still living in the city. Malki also said that legitimate forces in Yemen are preparing to cut the Houthis' route of supplies towards Saada.

Tony Award Windfall to Boost 'The Band's Visit'
Laurie Metcalf won her second Tony, playing a younger version of Jackson's imperious character in Three Tall Women . Of its 11 nominations, " The Band's Visit " received 10 Tony awards - the most for any nominees of the night.

Trump slams Robert De Niro as 'a very Low IQ individual'
In these perilous times, you rock the vote, always fighting for truth, transparency and integrity in government. And I apologize to [Canadian Prime Minister] Justin Trudeau and the other people at the G7".

Neymar shines for Brazil
The first scare came in the third minute following a late tackle from behind by midfielder Alessandro Schoepf. The Selecao superstar moved to 55 goals in 85 caps, equaling the record of 1994 World Cup victor Romario.

Tesla cuts 9 percent of workforce in bid to post profit
Most employees assigned to Home Depot positions will have the option to move to Tesla's retail stores, says Musk. Musk said the layoffs won't affect production of the Model 3 , since no production associates are being be cut.

Trump Responds To Robert De Niro, Calls Him 'Punch-Drunk'
And, after the f-bombs at the Tonys on Sunday night, it looks like De Niro is staying true to his word about speaking out. He made it through University of Pennsylvania, so he was exposed to a quality education, but he's still an idiot'.

Trump adviser apologizes for saying ‘special place in hell’ for Trudeau
The next morning, Navarro and chief economics adviser Larry Kudlow were deployed to the Sunday talk shows. Tuesday, Bloomberg News reported .

Nadal eyes 11th French Open title as clock ticks
After holding there, Nadal broke del Potro to take that set and was on his way, taking 14 of the last 17 games. Nadal won three games in a row after returning to court, but the match was stopped again in the ninth game.