Tuesday, 25 September 2018
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Fed Leaves Rates Unchanged, Says Inflation Close to Target
Thursday, 3 May 2018 01:13 WIB | FISCAL & MONETARY |Federal ReserveThe FedEkonomi AS

Federal Reserve officials left interest rates unchanged, acknowledging inflation is close to target without indicating any intention to veer from their gradual path of interest-rate increases.

œInflation on a 12-month basis is expected to run near the committee's symmetric 2 percent objective over the medium term, the policy-settingFederal Open Market Committee said in a statement Wednesday in Washington. œThe committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.

Officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the œsymmetric nature of their target.

The FOMC also noted the weakness in growth in the first quarter, removing a reference in the in March statement that the economic outlook had œstrengthened in recent months. They balanced that out by noting strong growth in business investment.

U.S. economic growth cooled in the first quarter to an annualized pace of 2.3 percent after averaging higher than 3 percent in the previous three quarters.

The decision to maintain the federal funds target range at 1.5 percent to 1.75 percent was a unanimous 8-0. This FOMC meeting won't be followed by a press conference.

The Fed's commentary is unlikely to change investor expectations that policy makers will raise interest rates for the second time this year when they re-convene in June.

Officials left unchanged their view that near-term risks to the economic outlook appeared œroughly balanced. That suggests policy makers are not ready to steepen dramatically the path they've projected for slowly raising rates.

The Fed lifted its benchmark rate three times last year -- while also beginning to slowly trim its balance sheet. Officials indicated in March they expect a total of three or four hikes in 2018.

The FOMC's two-day meeting followed the release of data Monday that showed inflation measured by the central bank's preferred gauge had hit its 2 percent target after being below that goal for almost every month since April 2012.

Policy makers aim to keep inflation near target while ensuring maximum sustainable employment and preserving a U.S economic expansion that is now the second longest on record.

Year-on-year growth in the personal consumption expenditures price index reached 2 percent in March, up from 1.7 percent in February. The jump was driven more by year-ago price drops in telecoms and pharmaceuticals than by recent price gains.

Source : Bloomberg

RELATED NEWS
Swiss National Bank keeps rates steady at -0.75%, as widely expected...
Thursday, 20 September 2018 14:54 WIB

Anggota dewan Swiss National Bank (SNB) memutuskan untuk meninggalkan suku bunga deposito acuan tidak berubah di -0,75% pada penilaian moneter kuartalan yang diadakan hari ini. Bank sentral mempertah...

BoJ leaves monetary policy unchanged...
Wednesday, 19 September 2018 10:31 WIB

Pada pertemuan kebijakan moneternya hari ini, Bank of Japan (BoJ) tidak mengubah pengaturan kebijakan moneternya, menahan suku bunga di -10bps sambil mempertahankan target hasil 10% JGB pada 0,00%. B...

ECB Draghi : Do More To Shore Up Banking Sector...
Tuesday, 18 September 2018 15:52 WIB

Presiden Bank Sentral Eropa Mario Draghi mendesak pemerintah zona euro pada hari Selasa untuk mengambil tindakan lebih lanjut untuk menopang sektor perbankan di kawasan tersebut, termasuk dengan membu...

European Central Bank Leaves Monetary Policy Unchanged...
Thursday, 13 September 2018 19:05 WIB

Bank Sentral Eropa, seperti yang diharapkan menetapkan suku bunga tidak berubah pada hari Kamis dan menegaskan kembali rencananya untuk mengurangi ukuran program pembelian obligasi bulan depan dan men...

Bank of England Keeps Rate Unchanged, Upgrades Growth Forecast...
Thursday, 13 September 2018 18:16 WIB

Bank of England (BoE) mempertahankan suku bunga acuannya tidak berubah setelah mengangkatnya ke level tertingginya sejak 2009 pada bulan lalu. Komite Kebijakan Moneter, yang dipimpin oleh Gubernur Ma...

POPULAR NEWS
Gold Expected To Gain Some Luster After Fed

Wall Street and Main Street both look for gold...

Gold Drops Second Day as Trade War, Rate Hike in Focus

Gold declines for second day with trade war...

Asia Stocks Fall as U.S., China's New Tariffs Take Effect

Asian stocks fell for the first time in five...

LATEST NEWS
Hong Kong stocks sink on new trade frictions

Hong Kong shares tumbled on Monday after the US imposed fresh tariffs on $200 billion of Chinese imports and Beijing cancelled planned talks between the two sides. The Hang Seng Index fell 1.62 percent, or 454.19 points, to close at...

Wall St Falls on U.S.-China Trade Tariff Standoff

On Wall Street the S&P and the Dow closed lower on Monday after a round of U.S.-China trade tariffs kicked in, dampening last week's hopes for a resolution and investors waited for an interest rate hike ahead of a U.S. Federal Reserve...

Oil Futures Settle Higher, with Global Benchmark Crude at a Nearly 4-Year High

Oil prices rallied on Monday, with Brent marking its highest settlement since late 2014 and U.S. benchmark West Texas Intermediate crude ending at a more than two-month high. At a meeting over the weekend, a committee made up of some members of...