Powell was appointed in October to replace former chair Janet Yellen. "Powell suggested that the Fed will tread carefully, but is open to the possibility that this could extend further", Mr Peters said.
The central bank boosted its key short-term rate Wednesday by a modest quarter-point to a still-low range of 1.5 percent to 1.75 percent and said it will keep shrinking its bond portfolio.
"Considering the Fed just hiked interest rates for the sixth time in this tightening cycle and revised up its rate expectations for 2019, the price of gold is faring quite well", she added.
The "dot plot" shows an FOMC evenly split between three and four rate rises in the current calendar year.
There was no indication of the size and scope of the tariffs, which U.S. Trade Representative Robert Lighthizer said on Wednesday would target China's high-technology sector and could also include restrictions on Chinese investments in the United States. Two more quarter-point rate increases are expected for the rest of this year, easing worries that one additional hike might be in the cards. There are, however, internet banks including Synchrony and Goldman Sachs' Marcus that are engaged in an arms race of raising rates on savings accounts, which are 1.55 percent at the upper end, and CDs.Читайте также: Putin will 'use World Cup like Hitler did the 1936 Olympics'
Benchmark 10-year Treasury notes US10YT=RR last rose 22/32 in price to yield 2.8263 percent, from 2.907 percent late on Wednesday.
In another change to the statement, the Fed said inflation on an annual basis is "expected to move up in coming months", after saying "move up this year" in the January statement. Therefore, inflation should move up closer to 2 percent (the medium term target) as the base effect fades away. Unemployment is now expected to fall to 3.8 percent this year and 3.6 percent in 2019, which would be the lowest level since 1969.
Central bankers see growth picking up this year and next, with GDP gaining 2.7 percent this year and 2.4 percent next year. "Job gains have been strong in recent months, and the unemployment rate has stayed low".
He also noted that there's growing concerns about a trade war hurting the USA economy.
In its latest forecast, the Fed predicted the US would grow 2.7% this year and 2.4% next year - well above the 1.8% pace that the central bank views as consistent with stable inflation. The 2019 estimate rose to 2.4% from 2.1%. But it makes sense as the tax cuts should hype growth in a tight labor market environment and it will be the Fed's job to make sure that faster expansion doesn't get transmitted into too strong inflation. The 2020 gross domestic product growth median projection was also unchanged at 2%. The rate the Fed controls - called the federal funds rate - will now hover between 1.5 and 1.75 percent, far below the 5.25 percent it reached before the financial crisis.
And while it may sound like a misbegotten goal, there's a good reason the Fed sometimes aims to curb spending and slow the economy; otherwise, an overheating economy can trigger rising - even spiraling - inflation.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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