WASHINGTON–The Federal Reserve has opted to make no changes
in interest rates following the conclusion of its meeting here, but it has
indicated it could move as soon as next month to cut rates if the United States
and China isn’t able to find ways to resolve their trade dispute. As a result, For now, the Fed left its short-term rate at a range of 2.25% to 2.5%. Eight
of the 17 votings, Fed policymakers did predict there could be as a half
percentage point decline in rates in 2019.
In a statement following its meeting, the Fed did dial down
a bit its forecast for the economy.
“In light of these uncertainties and muted inflation
pressures, the FOMC will closely monitor the implications of incoming
information for the economic outlook and will act as appropriate to sustain the
expansion, with a strong labor market” and inflation near the Fed’s 2% goal,”
the Fed said.
Fed Chairman Jerome Powell in recent interviews has
expressed concerns over what he called “cross-currents” in the economy.
Inflation remains below the Fed’s goal of 2% annually, and the most recent jobs
numbers were relatively small.
President Trump has recently announced plans to assess a 25%
tariff on the remaining $300 billion in Chinese imports not already hit
with such a tariff.
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