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<img src = "https://www.investor.bg/images/photos/0264/0000264683-article3.jpg" alt = "The Federal Reserve stressed Friday the" stable "growth of the economy American in the first half in its semiannual report to Congress, which also confirmed that it expects to continue to raise interest rates gradually
This is the second report of the Fed to the deputies since President Jerome Powell took the lead of the Central Bank in early February, he was to answer questions Tuesday and Wednesday Details of the 63-page report were in line with current Fed forecasts , detailed at meetings of bankers, according to which strong economic growth and the low unemployment rate requires an increase in interest rates, but the absence of severe inflationary pressures means that it can become gradual The American indices s reported a slight decrease after the report was released. "In the first half of this year, it appears that overall economic activity has increased steadily," the Fed said, adding that the economy continues to be supported by favorable attitudes of the economy. consumers and businesses. growth abroad as well as good financial conditions in the United States The Federal Reserve expects "a further gradual increase" in interest rates to continue to develop the l & # 39; economic expansion, which is currently the second longest The Fed claims that Trump's tax relief plan has likely helped weaken consumer spending since the beginning of the weak year and is expected to spur modestly economic growth this year. The relative "pink" image of the US economy was highlighted by Powell and in an interview Thursday where he said that he believed that the US economy was in a "very good state" as recently introduced taxes spending programs will likely contribute to an increase in gross domestic product for at least the next three years. do not see anything surprising. In short, Fed bankers expect continued tightening, without serious economic slowdown due to trade pressure The Federal Reserve raised interest rates seven times, since in December 2015 a Tightening cycle began and last raised its interest rate credit percentage by a quarter of a percentage point in mid-June. The Fed is planning two more interest rates by the end of the year "We do not see anything surprising," said Jim O 'Sullivan, chief economist at High Frequency Economics, New York, before Reuters. "In short, Fed bankers expect continued tightening without severe economic slowdown due to trade tensions." The report notes that central bankers are once again signaling that wage growth is weaker than they thought. Unemployment rate was 4% Wage growth was "moderate", according to the report, probably weakened by low productivity. It is pointed out that there may be even less weakening of the labor market as more older workers are ready to enter the labor market "if the demand for employees remains strong".
The Federal Reserve has shown little concern for financial stability, saying the financial markets are stable and that there is little pressure on liquidity, the bank notes that estimates of some badets have been noted and that any slowing of the economy could increase the vulnerability of [f (f.fbq) renvoie; n = f.fbq = function () {n.callMethod? Tags economic fed growth highlights Investorbg quotstablequot States United Related Articles |
