Friday, 9 November 2018 02:16 WIB |
FISCAL & MONETARY |Federal ReserveThe FedEkonomi AS
The Federal Reserve on Thursday held interest rates steady while signaling that it will stay the course and move rates up at a gradual pace in coming months.
As expected, the Fed kept its benchmark target for rates unchanged in a 2% to 2.25% range.
The central bankers left the core of its September statement unchanged.
œThe Committee expects further gradual increases in the target range for the federal funds rate, the statement said.
It said the risks to the economic outlook œappear roughly balanced. And it said that inflation remains near its 2% target.
The only tweak in the statement was to note that the growth of business investment had moderated in the third quarter.
There were no dissents from the statement.
Looking ahead, investors see a roughly 80% chance of a December quarter-point move.
In September, a strong majority of Fed officials had forecast the fed funds rate would be a quarter point higher by year end.
The lack of any shift in tone of the statement suggests the Fed is still penciling in three rate hikes for 2019.
The market is more dovish, only seeing two hikes next year.
The Fed statement made no mention of the increased volatility in financial markets since the last FOMC meeting.
The Dow Jones Industrial had risen ahead of the release of the statement. The 10-year Treasury note yield was steady around 3.233%.
Source : Marketwatch