Fed leaves rates unchanged, says US economy strong

WASHINGTON (Reuters) – The U.S. Federal Reserve held interest rates steady on Thursday but remained on track to keep gradually tightening borrowing costs, as it pointed to a healthy economy that was marred only by a dip in the growth of business investment.

‘The labor market has continued to strengthen and … economic activity has been rising at a strong rate,’ the U.S. central bank said, leaving intact its plans to continue raising rates at a gradual pace. The Fed has hiked rates three times this year and is widely expected to do so again in December.

Boosting investment was one of the main objectives behind the Trump administration’s move to reduce the corporate tax rate as part of its restructuring of the tax code at the end of 2017.

  • Publisher: U.S.
  • Date: 2018-11-08T21:05:15+0000
  • Author: Howard Schneider
  • Twitter: @Reuters
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Not to change the topic here:

Strong US economy puts Fed on track for December rate rise

Gain a global perspective on the US and go beyond with curated news and analysis from 600 journalists in 50+ countries covering politics, business, innovation, trends and more.

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  • Publisher: Financial Times
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Fed stands pat on rates, signals December hike amid upbeat economic outlook

The Fed held its key interest rate steady at 2% to 2 1/4%. With an upbeat economic outlook, it signaled a likely rate hike at its December meeting.

* * *

WASHINGTON ‘ With the economy sailing along, another interest rate hike is almost certainly in the cards next month.

The Federal Reserve held its key short-term rate steady Thursday but maintained its upbeat view of the economy, setting the stage for a fourth rate increase in 2018 at its Dec. 18-19 meeting.

In a statement after a two-day meeting, the Fed described both economic and job growth as ‘strong.’ The economy has turned in its best six-month stretch since 2014 while unemployment is at a near 50-year low.

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  • Publisher: USA TODAY
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The midterm elections may give the US economy a short-term boost, but bigger challenges remain

There usually is a return of confidence to equity markets’after the midterms, if only because the elections frequently result in gridlock. Markets like it when politicians cannot do very much

The outcome of the US midterm elections is good news for the US and world economies for at least half a dozen reasons. Let’s go through them, and then think about the rest of the year and beyond.

One, the Republicans losing control of the House means that it will be impossible, or at least very difficult, for the president to get controversial legislation through Congress.’

Three, in any case there will be continuing tension between the president and the Fed. Property developers like cheap money to get their projects financed and a bit of inflation later will increase the capital value of their buildings. The Fed has to lean against inflation, currently 2.3 per cent and expected to firm in the coming months. The markets do not expect anything at the Fed meeting this week, but do expect the next increase in rates in December.

  • Publisher: The Independent
  • Date: 2018-11-07T15:06:53+00:00
  • Author: Hamish McRae
  • Twitter: @independent
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US Fed leaves key rates unchanged, says overall US economy strong

After adding four-tenths of a percentage point to economic growth in the first six months of the year, lagging investment in “nonresidential structures” trimmed a quarter of a percentage point in the annualised growth rate for the third quarter.

Financial markets, which had expected the Fed to hold its benchmark overnight lending rate steady in the current range of 2 percent to 2.25 percent this week, ticked lower after the statement was released.

After a stock market rout in October and signs that both housing and business investment may be waning, some analysts expected the Fed to possibly signal doubt about its next rate increase.

  • Publisher: Moneycontrol
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Fed Leaves Rates Unchanged, Says U.S. Economy Strong

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