The U.S. Federal Reserve has increased for the fourth Time this year, the key interest rate. They increased the interest rate by a quarter point to the new target corridor of 2.25 percent to 2.5 percent. In order to respond to the good economic situation in the United States.
the decision of The open market Committee of the Federal Reserve in this Form largely in the financial markets had been expecting. US President, Donald Trump had exercised several times in the past considerable pressure on the independent Central Bank. On Twitter, he warned the Fed to decide the interest rate hike. According to Trump unnecessarily high interest rates could have a negative impact on the US economy. The Central banker should not make “another mistake,” said Trump.
the Chairman of The US Federal Reserve, and Jerome Powell, has suspicions pointed that the policy could have an influence on monetary policy decisions. Political considerations played no role in the determination of the monetary policy stance, said Powell after the interest rate meeting of the Fed in Washington. A representative of the press had asked him explicitly then. “No one will deter us from the right way to go,” said the Central Bank chief.
The current interest rate hike is the ninth interest rate hike by the Fed for 2015 and the fourth in the current year. Their last increase had prompted the Central Bank last September. The Central Bank signalled but already a slower rise in Interest rates for the coming year. Although it is 2019, with further increases in interest rates. Instead, in September, estimated, are now only two instead of three, further interest rate steps are planned. In the year 2020 is expected to follow, therefore, a further interest rate increase. The long-term interest rate the Fed with 2.8 percent.
reduces The Fed has also its growth forecast for the US economy for this year by 0.1 points to 3.0 percent. For the coming year, you forecast an economic growth of 2.3 percent. In the past, the expectation had amounted to 2.5 per cent. Also, Inflation is not expected for this and the coming year a little weaker. The projections for 2020 and 2021 were not changed.