Friday , May 14 2021

The US Central Bank maintains stable interest rates and says the economy remains on track



WASHINGTON (Reuters) – The Federal Reserve maintained and continued strong working lives on Thursday, while household spending kept the economy on track.

"The labor market is gaining momentum … and economic activity is rising steadily," the central bank said in a recent statement on policies and kept plans to gradually increase interest rates.

The statement does not reflect the change in the US central bank's economic forecast since the previous session of the Monetary Policy Committee in September, as inflation is still close to the target of 2 percent and falling unemployment, while the risks to the economic outlook appear to be "almost balanced".

Nevertheless, policymakers warned that corporate investment "slowed down at the beginning of the year," posing a possible pressure on future economic growth.

The decision of the Federal Republic of Germany was in line with the expectations on the financial markets, so that overnight interest rates would steadily fall to 2.25 percent to 2.25 percent.

The Central Bank has raised interest rates three times this year and expects it to rise again in December.

Data showed at the end of October that the US economy grew at a 3.5% annual rate in the third quarter, well above the annual growth rate of 2%, which is the central bank and many economists saw as a key trend.

Policy ministers are also discussing whether the economy has stabilized at a high level since the incentive for a tax package reduced by $ 1.5 trillion created by Donald Trump's administration and whether the increase in federal spending began to decline.

The US central bank statement did not explicitly address the volatility in US stock markets, which led to the sale in October and did not address the prospect of a slowdown in global growth next year.

No economic appearance was published on Thursday, and Jerome Powell, President of the Federal Reserve, was due to hold a press conference.

The decision of the Federal Reserve Committee on Monetary Policy was adopted unanimously.

(Reuters)


Source link