Fed Raises Interest Rates for Second Time this Year

Federal Reserve expected to hike rates as Sterling slips

The Federal Reserve is guiding a US economy that is as close to ideal as it could have dreamed a decade ago, when the darkest days of the recession forced it to take big risks to protect workers, banks and economies around the world from further devastation.

In a statement released at the end of a two-day meeting, the Fed suggested that the USA economy is strong and not in need of a boost, according to the New York Times. "Ongoing job gains are boosting wages and confidence".

What took investors by surprise was the Fed's projection that it would increase rates twice in the next few months, which was faster than the market had expected. When the Fed tightens credit, it aims to do so without derailing the economy.

The 3.8-percent jobless rate is close to the lowest level ever seen in the U.S. There are more job openings than workers seeking employment in the country for the first time in recorded history, and recent inflation data shows prices inching through the Fed's ideal threshold.

The change will start in January following the meetings that are scheduled roughly once every six weeks, to give the Fed "more opportunities to explain our actions", Mr Powell told reporters. "Fiscal policy played a role during the crisis, but monetary policy was at the forefront".

America's official interest rate has risen for the second time this year, and is now firmly higher than Australia's.

"I think we are far enough away now though that the risks are kind of balanced", he said.

Former heavyweight champion Tyson Fury wins in boxing comeback
"I'm sure Frank Warren is going to keep me busy and the calibre of opponents will keep rising", Fury said. But Seferi was a nuisance for Fury early, and the former champion was warned for joking around.

Farrah Abraham Arrested for Allegedly Fighting at the Beverly Hills Hotel
She later denied her part in anything that went down in the hotel, saying, "I did not attack, or batter, or hurt or injure". We are just smoothing it out, keeping it normal, keeping it natural with our regular collagen'.

Microsoft Gives Office a New Look
To name a few, features like the roaming pencil case and ribbon customisations will debut in the Office apps with the new edition. The Office 2019 for Mac commercial update will roll out alongside the Office 2019 for Windows update sometime later in this year.

The Fed last raised the benchmark in March, the sixth increase since December 2015, as it tries to keep the economy growing at a sustainable pace without fuelling inflation.

At least on the immediate horizon, little appears to stand in the way, given the government's $1.8 trillion in combined tax cuts and planned spending. Even amid concerns about U.S. trade policy, the Fed raised its forecast for gross-domestic-product growth this year to 2.8% from 2.7%.

The central bank had projected three to four rate hikes this year as the economy continues to pick up steam and inflation nears the 2% target rate thanks to strong labor market conditions. Another reason for caution is the White House's threats of more tariffs, including on its closest allies, raising questions over how worldwide trade will affect growth.

Growth is also expected to stay close to nearly 3 percent of GDP through the year, and Fed officials are eager to prevent the economy from overheating.

The central bank also lifted its growth forecast to 2.8 per cent this year, up a small amount from its projection of 2.7 per cent annual growth in March.

That is a welcome step-up from the roughly 2-percent growth averaged throughout the recovery, which was plagued by a series of crises overseas and uncertainties at home, delaying the Fed's tightening plans. The unemployment rate in May was 3.8%, its lowest since 2000, while inflation was just below the Fed's 2% target.

Fast-forward to April of this year when data showed that USA job openings jumped to a record high, far outpacing hiring.

Related news:

Hot News

isis-killer-beheading-video-story-top US Infants Eating More Added Sugar Than Adult Limits Before 2nd Birthday
Jun 14, 2018 - 03:59
Herrick said the findings could have implications for the upcoming revision of the Dietary Guidelines for Americans . The body processes all types of sugars in the same way, but those added to food are believed to be more harmful.

isis-killer-beheading-video-story-top Korean officials hold marathon talks ahead of summit
Jun 14, 2018 - 03:59
The US may also look for North Korea to declare the existence and location of all the elements of its nuclear program. Trump also called the leaders of South Korea and Japan in advance of the summit, Pompeo said.

isis-killer-beheading-video-story-top [US-NK Summit] Timeline for Trump-Kim summit
Jun 14, 2018 - 03:47
Trump told reporters he would "absolutely" extend an invitation to the White House to Kim, who also heralded a new era. One thing the American president said wouldn't make the schedule: a round of golf between the two leaders.

isis-killer-beheading-video-story-top Four-country migrant ship standoff escalates as Italy demands apology from France
Jun 14, 2018 - 03:18
Let them open their ports and if they want we can send them a few people", he told reporters on Tuesday. Kurz said Europe needed an " axis of the willing in the fight against illegal migration".

isis-killer-beheading-video-story-top As Massive Storm Rages on Mars, Opportunity Rover Falls Silent
Jun 14, 2018 - 03:13
The Opportunity Rover has fallen silent and controllers have been unable to reach it, according to reports from the news wires. A NASA rover on Mars has fallen silent as a enormous dust storm envelops the planet and blots out the sun.

isis-killer-beheading-video-story-top Jada Pinkett Smith reveals her grandmother taught her about 'self-pleasuring'
Jun 14, 2018 - 03:05
Meanwhile, Spade's husband Andy wrote the following after her suicide: "Kate suffered from depression and anxiety for many years". Jada Pinkett Smith never shies away from sharing the personal ins and outs of everything-from her career and parenting to sex .

isis-killer-beheading-video-story-top How Harry reassured 'nervous' Meghan during her first Trooping the Colour
Jun 14, 2018 - 02:30
In April 2014, Prince Harry's brother and sister-in-law, the Duke and Duchess of Cambridge , spent 18 days in the two countries. The pair were spotted looking lovingly at each other while the Queen made her way into the palace.

isis-killer-beheading-video-story-top UN scrambles to avert 'fierce bloody battle' for Yemen port
Jun 14, 2018 - 02:06
The United Nations fears that a battle in Hodeidah could be devastating for the estimated 600,000 people still living in the city. Mr Griffiths held several rounds of talks last week in the Yemeni capital of Sanaa, which is held by the rebels.

Elijah Wood Unveils Trailer For His VR Ubisoft Game ‘Transference’
Jun 14, 2018 - 01:45
If you prefer to play without VR, the game will still be fully playable on PS4, Xbox One, and PC when it launches this fall. Transference is a physiological thriller which is made by a collaboration between Ubisoft Montreal and SpectreVision .

isis-killer-beheading-video-story-top United Target, Tottenham Back Toby Alderweireld Uncertain About Club Future
Jun 14, 2018 - 01:42
Rose was rumoured to be a target for Manchester United and it was claimed he was keen to make the move to Old Trafford. Today, an update on Manchester United's move for Danny Rose and Marco Verratti has been offered to Jose Mourinho ...

isis-killer-beheading-video-story-top Brexit funder Arron Banks walks out of MPs' questions for lunch date
Jun 14, 2018 - 01:33
However, he changed his mind after newspapers revealed over the weekend two further undisclosed meetings with the ambassador. Cambridge Analytica whistle-blower Ms Kaiser had previously told the committee that data had been misused between Leave.

isis-killer-beheading-video-story-top NCAA eases rules on athlete transfers
Jun 13, 2018 - 23:41
Upon being entered into the database, college coaches will be allowed to contact the athlete freely and without permission. Applications for the rule to be applied to other Division I sports is now being looked at by the council.

isis-killer-beheading-video-story-top Stranded raccoon scales skyscraper in downtown St. Paul
Jun 13, 2018 - 23:28
Onlookers, reporters and social media users fretted about the welfare of the critter as it climbed the UBS Tower on Tuesday. By midafternoon, the raccoon had ventured an additional 10 stories up, its claws somehow digging in enough to continue.

Here are the cities that will be hosting the 2026 World Cup
Jun 13, 2018 - 23:16
After the summit, Trump attacked Trudeau as "dishonest" and "weak." and accused him of making false statements around the tariffs. Where, exactly, the World Cup will be played, and whether all three host nations will automatically qualify for the tournament.

isis-killer-beheading-video-story-top US Secretary of State to visit China, talk about Trump-Kim summit
Jun 13, 2018 - 23:12
Lawmakers, analysts and allies have hailed the effort but questioned the substance of what was achieved. When asked if he would know if such discussions were planned, he said, "Yeah, I sure would".