What did the Fed say?
September 27, 2018 7:21 amVideo
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What did the Fed say?
Commentary on the decision on interest rates on September 26, 2018
The fed raised the rate by + 0.25%, from 1.875 to 2.125%, and gave a comment:
The information received since the Fed’s meeting in August indicates that the labor market continued to strengthen and that economic activity increased at a strong pace. Job growth has been strong, on average in recent months, and unemployment has remained low. Household spending and business investment grew strongly. On a 12-month basis, both total inflation and inflation other than food and energy remain close to 2 percent. Indicators of long-term inflation expectations have changed little in the end.
In accordance with its statutory mandate, the Fed seeks to promote maximum employment and price stability. The Fed expects further gradual increases in the target range for the US central bank’s interest rate to be consistent with sustained growth in economic activity, strong labor market conditions, and inflation around the its 2 percent target in the medium term. Risks to the economic outlook appear roughly balanced.
In view of the realized and expected conditions of the labor market and inflation, the Fed decided to raise the range of the Federal funds interest rate to 2 to 2-1/4 percent.
In determining the timing and size of future changes in the Federal funds rate, the Fed will assess the realized and expected economic conditions relative to its maximum employment target and its 2 percent inflation target. This assessment will take into account a wide range of information, including indicators of labour market conditions, indicators of inflation pressures and inflation expectations, and data on financial and international events.
The material has been provided by InstaForex Company – www.instaforex.com