The Fed is indifferent to Trump 's attacks, and its stance on raising interest rates is like an eagle soaring in front of the gate, motionless as a mountain. Reuters
According to the Economic Daily, the Federal Reserve (Fed) kept interest rates unchanged on Wednesday and reiterated that it will gradually raise interest rates as the U.S. economy is strong. This also convinced the market that the Fed will raise interest rates as soon as September.
The Federal Open Market Committee (FOMC) issued a statement saying that economic sentiment has been rising at a "strong pace," the unemployment rate "remains low," and "household spending and business fixed investment have grown strongly."
The FOMC held steady as expected and also reiterated policy The forward-looking guidance of "further gradual increase" of the indicator is to prepare for the next interest rate hike in September.
U.S. President Trump criticized the Fed last month and was not happy to see the Fed continue to raise interest rates. But economic experts pointed out that Fed policymakers are not affected at all and do not care about such political comments.
The U.S. market was also indifferent to the Fed's statement. The S&P 500 index closed down only 0.1%, and the 10-year government bond yield was at 3%. The probability that the Fed will raise interest rates on September 25th and 26th remains about 80%.
Laurence Meyer, a former Fed governor who now works at a research firm in Washington, said: "The FOMC statement shows no sign of reducing the possibility of a rate hike in September. The market is now reflecting that a rate hike in September is almost certain, and we agree with it. Such an assessment. "
Fed Chairman Powell is trying to slowly reduce the strength of monetary policy to support the economy in order to maintain the second-longest economic growth in the history of the U.S. economy. The U.S. economy is facing pressure from tax cuts and increased federal spending, but the trade war may be detrimental to economic growth.
The Federal Open Market Committee said risks to the economic outlook were "roughly balanced" and reiterated that "monetary policy remains accommodative" while keeping the target range for its benchmark policy rate unchanged at 1.75%-2%.
Fed passed Wednesday's decision unanimously, 8-0. Williams participated in the vote for the first time as President of the Federal Reserve Bank of New York and Vice Chairman of the Fed. His original responsibilities as President of the Federal Reserve Bank of San Francisco were temporarily replaced by George, President of the Federal Reserve Bank of Kansas City. The San Francisco Fed president is still looking for a new candidate.
