Daily Management Review

A Gradual Hike Ion Rates Anticipated To Be Continued By U.S. Fed In 2018


02/26/2018




A Gradual Hike Ion Rates Anticipated To Be Continued By U.S. Fed In 2018
The U.S. is expecting a stronger economic outlook and this has prompted experts to predict that the U.S. Federal Reserve would continue its strategy of a gradual hike in interest rate through this year.
 
"The (Federal Open Market) Committee expects that the ongoing strength in the economy will warrant further gradual increases in the federal funds rate," said the semiannual Monetary Policy Report to the Congress that was released by the Fed at the end of last week.
 
"The economic expansion continues to be supported by steady job gains, rising household wealth, favorable consumer sentiment, strong economic growth abroad, and accommodative financial conditions," said the report.
 
For the fiscal year of 2018, the report noted that there is likelihood of a moderate increase in the economic growth primarily driven by some of the federal fiscal policies such as the 1.5-trillion-U.S. dollar tax cuts and the enhanced budgeted spending by the government for the fiscal 2018 and 2019.
 
The report further states that it expects that the Fed would also increase rates of interest in the country by on at least three occasions this year, and this anticipation was based on the same forecasts made by the Fed in December in this regard.
 
According to the Fed, the U.S. economy and the financial system is only exposed to moderate on balance risk as far as the overall vulnerabilities are concerned despite the sharp fall in the U.S. and the global market in recent weeks.
 
However, for a range of assets that incudes equities and real estate, there would be elevated pressures which are expected to continue, it warned. 
 
The recent market turbulence and volatility and its impact on the U.S. economy has been downplayed by the U.S. Fed officials especially in their public remarks and comments. The Fed has said that it would persist with their forecast for a stronger growth outlook accompanied by a gradual hike in rate of interest.
 
The Fed feels that the future path for a series of gradual but steady hike in rates has bene cleared as it is more confident about the economic growth and the forecasted rates of inflation and this has been reflected in the minutes of the Fed's policy meeting which were held on Jan. 30 and 31 last year.
 
Strong overseas economic figures as well as strong domestic data, big tax cuts by the government and the overall accommodative financial conditions prevailing in the U.S. has propped up a number of officials to give an uptick to their future estimation of the economic growth in the country in the near term.
 
(Source:xinhaunet.com) 






Science & Technology

Baidu comes up with a self-driving bus

Developing countries are stepping up their own space programs

McAfee: Number of cybercrime attacks skyrocketed

RemoveDebris Mission To Clear Debris Of In Orbit Over Earth

British experts: Online gambling is dangerous

Vodafone Chooses ‘Highly Trafficked Urban’ Space As Its 5G Testing Grounds

Space To Become A Travel Destination By 2022

Dream Of Immortality Can Be Realised By 2045

Predicting A Patient’s Death Might Be Possible With Google’s Machine Learning Tool

Are online DNA databases dangerous?

World Politics

World & Politics

Was Trump's visit to the UK the last straw?

Prime Minister May Could Alter Brexit Strategies, Said Ress-Mogg

Le Maire: The US refused to release France from anti-Iran sanctions

One Belt, One Road is facing difficulties around the world

Qatar to raise $ 4 billion to buy Eurofighter Typhoon jets

The UK sets to turn all cars zero-emission by 2030

Brexit Minister’s Resignation States May’s Brexit Policies Weakening The Country’s Stance

Global Plastic Waste Can Wrap The Planet ‘Seven Times Every Hour’