WASHINGTON (AP) — The Federal Reserve signaled its confidence Wednesday in the U.S. economy by raising a key interest rate for a third time this year, forecasting another rate hike before year's end and predicting that it will continue to tighten credit into 2020 to manage growth and inflation. The Fed lifted its short-term rate — a benchmark for many consumer and business loans — by a modest quarter-point to a range of 2 percent to 2.25 percent. It was its eighth hike since late 2015. The central bank also stuck with a previous forecast for three more rate hikes in 2019. In a statement after its latest policy meeting, the Fed dropped phrasing it had long used that characterized its policy as "accommodative" — that is, favoring low rates. The Fed had used variations of that pledge in the seven years that it kept its key rate at a record low near zero and over the past nearly three years in which it's gradually tightened credit. By removing that language, the Fed … [Read more...] about Federal Reserve raises rates for third time this year with one more expected
Federal reserve raises rates
US stocks dip after Federal Reserve raises rates
Visit The Boston Globe Share on Twitter Share on Facebook Comment on this Scroll to top of page By STAN CHOE Associated Press September 26, 2018 US stock indexes dipped Wednesday after the Federal Reserve took the latest step in its campaign to pull interest rates gradually higher.The decision to raise the federal funds rate for a third time this year was widely expected, and stocks initially climbed following the announcement. But the gains faded in the last 30 minutes of trading after Fed chairman Jerome Powell finished speaking at a news conference. The sharpest losses came from financial stocks, hurt by a drop in Treasury yields, which can crimp lending profits for banks.The S&P 500 fell 0.3 percent, to 2,905.97, after being up as much as 0.5 percent. The Dow Jones industrial average fell 0.4 percent, to 26,385.28, and the Nasdaq Composite lost 0.2 percent, to 7,990.37. Advertisement Powell said the US economy is in a ‘‘particularly … [Read more...] about US stocks dip after Federal Reserve raises rates
U.S. stocks dip after Federal Reserve raises rates
Share Tweet Share Email Comments Print ADVERTISEMENT NEW YORK — U.S. stock indexes dipped Wednesday after the Federal Reserve took the latest step in its campaign to pull interest rates gradually higher. The decision to raise the federal funds rate for a third time this year was widely expected, and stocks initially climbed following the announcement. But the gains faded in the last 30 minutes of trading after Fed Chairman Jerome Powell finished speaking at a news conference. The sharpest losses came from financial stocks, hurt by a drop in Treasury yields, which can crimp lending profits for banks. The S&P 500 fell 9.59 points, or 0.3 percent, to 2,905.97 after being up as much as 0.5 percent earlier in the day. The Dow Jones industrial average fell 106.93, or 0.4 percent, to 26,385.28, and the Nasdaq composite lost 17.11, or 0.2 percent, to 7,990.37. Powell said that the U.S. economy is in a “particularly bright moment,” which would … [Read more...] about U.S. stocks dip after Federal Reserve raises rates
Federal Reserve raises rates amid stronger economy
The Federal Reserve raised interest rates for the second time this year and signalled "strong" economic growth would mean a faster pace of rate hikes this year. The central bank raised its benchmark rate by a quarter point to a range of 1.75% to 2%, as was widely expected. The Fed has now raised rates seven times since late 2015."The economy is doing very well," Fed Chairman Jerome Powell said in a press conference."Most people who want to find jobs are finding them. Unemployment and inflation are low. The overall outlook for growth remains favourable."Unemployment is currently at an 18-year low of 3.8% and is expected to fall further to 3.6% this year.He also signalled the central bank would tolerate inflation above its 2% target amid higher oil prices. Inflation is expected to rise to 2.1% this year."We know inflation is going to bounce around," Powell said. "We didn't overreact, I think, to inflation being under 2%. We won't overreact to it being over 2%."The Fed expects the … [Read more...] about Federal Reserve raises rates amid stronger economy
Federal Reserve raises interest rates by 0.25 per cent
The Federal Reserve raised its key interest rate today as it continues its efforts to normalise monetary policy with officials' projections pointing to four hikes in total during 2018. The US central bank moved the target range for its federal funds rate to 1.75 per cent to two per cent. Markets had priced in a rate hike as a near certainty ahead of the meeting, with all eyes on the economic projections of the Fed's economists and prospects for more increases in the second half of the year. The closely watched "dot plot", which indicates the views of the rate-setting Federal Open Market Committee on the future course of monetary policy, showed that eight of the 15 voters foresee at least two more quarter-point increases during this year. Federal Reserve chair Jerome Powell has consistently pointed to a need for a gradual tightening in monetary policy, with one interest rate rise already under his belt, at the central bank's meeting in March. The Fed's policy statement said that the … [Read more...] about Federal Reserve raises interest rates by 0.25 per cent