(Kitco News) - Gold prices are holding steady just below the psychological barrier of $1,300 an ounce after the Federal Reserve suggested that it will hike interest rates more aggressively this year and the next as the US economy continues to grow. And since the Fed started its post-recession rate increases in late-2015, they've coincided with hikes so that the chair has an opportunity to explain the decision.
The so-called "dot plot" released with their decision showed eight Fed policy makers expected four or more quarter-point rate increases for the full year, compared with seven officials during the previous forecast round in March.
Officials now expect four rate rises this year, not three as the balance of policymakers has shifted since March.
Free Climbing Raccoon Captures Hearts and Minds Scaling Minnesota Skyscraper
Onlookers and reporters tracked the critter's progress as it scaled the 25-storey UBS Tower. The raccoon was first spotted on a ledge Tuesday morning, just a few floors high.
The Fed now foresees four rate hikes this year, up from the three it had previously forecast.
"The committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee's symmetric 2 percent objective over the medium term", the statement said.
"Household spending has picked up while business fixed investment has continued to grow strongly", the Fed said. The dollar pared some losses but was still trading lower against a basket of currencies.
Federal Reserve Board Chairman Jerome Powell arrives at his news conference after the two-day meeting of the Federal Open Market Committee (FOMC) on interest rate policy in Washington, U.S., June 13, 2018.
Kane expects 'brave' and 'aggressive' England in Russian Federation
Sending him out on loan would not be a bad idea for his development, however, losing a player such as this for an entire season would hurt us.
While many economists think the current expansion will exceed the 1990's streak, some worry about what might occur once the impact of the tax cuts begin to fade and the Fed's gradual rate hikes begin to curb growth.
The unemployment rate, now at an 18-year low of 3.8 per cent, is expected to fall to 3.6 per cent this year, compared to the 3.8 per cent that the Fed projected in March. With the economy now nine years into an expansion, the move reflects the steadiness of growth, the job market's strength and inflation that's finally nearing the Fed's target level. For 2020, the Fed foresees a median of 3.4 percent.
Projections released after the Fed's two-day meeting in Washington show policymakers expect the United States economy will grow 2.8% this year, while unemployment falls to 3.6%. Unemployment and inflation are low.
Even so, raising rates too quickly could prevent vulnerable Americans and pockets of the country still struggling from reaping the benefits of a strong economy. Investors had given just over a 91% chance of a rate rise on Wednesday, according to an analysis by CME Group. "The Fed is prepared to be quicker about pushing rates higher".
Prince George, Cousin Savannah Phillips Outshine Royals At Queen's Birthday Parade
Like the Duke and Duchess of Sussex , he married his Canada-born wife Autumn at St George's Chapel in Windsor in 2008. In a second exchange, a lip-reading expert told Mirror Online Meghan admitted she was nervous.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said before the Fed made its announcement that policymakers are "scared of future inflation risk".