Latest News

  • Home
  • National
  • US Fed keeps interest rates unchanged, approves portfolio cuts in October.
US Fed keeps interest rates unchanged, approves portfolio cuts in October.
Thursday, September 21, 2017 IST
US Fed keeps interest rates unchanged, approves portfolio cuts in October.

 
The US Federal Reserve left interest rates unchanged on Wednesday but signalled it still expects one more increase by the end of the year despite recent weak inflation readings.
 
New economic projections released after the Fed’s two-day policy meeting showed 11 of 16 officials see the “appropriate” level for the federal funds rate, the central bank’s benchmark interest rate, to be in a range between 1.25% and 1.50% by the end of 2017.

 
 

That is one-quarter of a point above the current level.
 
“The labour market has continued to strengthen ... economic activity has been rising moderately so far this year,” the Fed said in its policy statement. It added that the near-term risks to the economic outlook remained “roughly balanced” but that inflation was being watched “closely.”
 
The interest rate outlook for next year remained largely unchanged, with three hikes envisioned. But the US central bank slowed the pace of projected monetary tightening from there.
 
It forecasts only two increases in 2019 and one in 2020. It also lowered again its estimated long-term “neutral” interest rate from 3% to 2.75%, reflecting concerns about overall economic vitality.
 
The Fed, as expected, also said it would begin in October to reduce its approximately $4.2 trillion in holdings of US Treasury bonds and mortgage-backed securities by initially cutting up to $10 billion each month from the amount of maturing securities it reinvests.
 
That action will start a gradual reversal of the three rounds of quantitative easing the Fed pursued between 2008 and 2014 to stimulate the economy after the 2007-2009 financial crisis and recession.
 
The limit on reinvestment is scheduled to increase by $10 billion every three months to a maximum of $50 billion per month until the central bank’s overall balance sheet falls by perhaps $1 trillion or more in the coming years.
 
Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. ET (1830 GMT).
 
The policy statement and accompanying projections showed the Fed still in the middle of a balancing act between an economic recovery that has kept US unemployment low and is gaining steam globally and a recent worrying drop in US inflation.

 
 

Three of the hawkish policymakers appeared to move their expected policy rate down to account for only one more hike by the end of 2017, leaving a core 11 clustered around a likely December increase. The Fed has raised rates twice this year.
 
The Fed noted that the recent hurricanes in the United States would affect economic activity but are “unlikely to materially alter the course of the national economy over the medium term.”
 
Forecasts for economic growth and unemployment into 2018 and beyond were largely unchanged. Gross domestic product is now expected to grow at a rate of 2.4% this year, 2.1% next year and 2% in 2019.
 
The unemployment rate is forecast to remain at 4.3% this year before falling to 4.1% next year and remaining there in 2019.
 
Inflation is expected to remain under the Fed’s 2% target through 2018 before hitting it in 2019.
 
There were no dissents in the Fed’s policy decision.

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
Here is the full list of 827 porn websites banned by the DoT

While the Uttarakhand High Court has asked to block 857 websites, the Ministry of Electronics and IT (Meity) found 30 portals without any pornographic content. ...

Recently posted . 61K views . 1 min read
 

 Article
Class XII Boys Raped 16-Year-old in Dehradun School After Watching Porn on Phone: Police

The four boys as well as five school officials, including the director and principal, were arrested after the incident. The minors were presented before the Juvenil...

Recently posted . 8K views . 1 min read
 

 Article
Sept 27,2001 Rahul Gandhi and his girl friend Veronique,was arrested in Logan airport in Boston

Rahul was having an Italian passport and was carrying suitcase full of dollars. Some say it was about was it $2 million. Rahul and his girl friend was th...

Recently posted . 7K views . 7 min read
 

 Article
TOP 10 GYM EQUIPMENT BRANDS IN INDIA 2017

True – Tr...

Recently posted . 6K views . 83 min read
 

 
 

More in National

 Article
Centre Removes 312 Sikh Foreign Nationals From Blacklist, Only 2 Remain

These Sikh foreign nationals are now eligible to avail visa services to visit their families in India and reconnect with their roots, the government said.

Recently posted. 593 views . 1 min read
 

 Article
Delhi Metro employees threaten strike from June 30, want union and better pay

The Delhi Metro Rail Corporation employs around 12,000 people, with non-executive staffers accounting for about 9,000.  

Recently posted. 540 views . 1 min read
 

 Article
Do You Know What Happens To Your Clothes Once You Throw Them Away?

As consumers of fashion, we are quick to purchase clothes that catch our attention and equally fast in discarding clothes that we have worn way too many times.

Recently posted. 469 views . 1 min read
 

 Article
LeT agent Sandeep Sharma converts to Islam, joins Lashkar to win over "Kashmiri girl"

Srinagar: Sandeep Sharma, a.k.a Adil, who was captured by Jammu and Kashmir Police last Sunday,  joined terror group Lashkar-e-Taiba as he needed to wed a &quo...

Recently posted. 581 views . 15 min read
 

 Article
Farmer gets Rs 1,064 for 750 kg of onion; sends money to PM Narendra Modi

The money order was sent on November 29 from the Niphad office of India Post. It was addressed to "Narendra Modi, Prime Minister of India". ...

Recently posted. 611 views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

Awesome msg. Ek Sach Chupa Hota Hai :- Jab Koi Kisi Ko Kehta Hai Ki "Mazaak Tha Yaar". Ek Feeling Chupi Hoti Hai :- Jab Koi Kehta Hai "Mujhe Koi Farq Nahi Padta". Ek Dard Chupa Hota Hai :- Jab Koi Kehta Hai "Its Ok". Ek Zarurat Chupi Hoti Hai :- Jab Koi Kehta Hai "Mujhe Akela Chhod Do". Ek Gehri Baat Chupi Hoti Hai :- Jab Koi Kehta Hai "Pata Nahi". Ek Samundar Chupa Hota Hai Baato Ka :- Jab Koi "Khamosh Rehta Hai"..... Isi liye ek Open Heart Surgery unit k baahar likha huwa tha k...."Agar Dil Khol Lete Apne Yaaro Ke Saath,To Aaj Kholna Na Padta Auozaro K Saath".
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top