Monday , April 19 2021

The Fed maintains US rates between 2% and 2.25%



Money costs

The agency found that the US economy "is growing strongly" and with a steady increase in employment

On Thursday, the Federal Reserve (Fed) maintained current interest rates and emphasized sustainable good economic performance despite a slowdown in investment.

The company reiterated that it expects "gradual growth" in the levels, as the economy continues to grow, but its statement did not show that it would be more aggressive to cope with inflation.

Indeed, the decision could be understood as indicating that the Fed was of the opinion that the risks of overheating the world's largest economy had been reduced.

The Fed's open-market (FOMC) department maintained federal rates in the range of 2% to 2.25%.

Almost all businesspeople expect the fourth growth rate in December, but according to a recent report showing that wages are beginning to increase, they now expect to tighten monetary policy next year.

The Fed has warned that the economy is "growing rapidly", strong employment growth, reduced unemployment and household consumption in a sharp increase.

However, the markets must disclose part of the Fed's statement. For a company, "Fixed corporate investments slowed down at the beginning of the year in terms of their high rate."

This could be seen as an indication that the Fed would be more cautious and could raise interest rates by less than three times the following year.

It can also be interpreted as a result of commercial confrontations in which President Donald Trump co-operated and who caused concern at the central bank, fearing that high tariffs would undermine the company's trust and investment plans.

Trump repeatedly criticized Fed Chairman Jerome Powell because he thinks that interest rate management is very aggressive. For Trump, the increase in money costs affects its efforts to promote growth in the US.

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