Saturday , May 15 2021

The US economy strong, the Fed to raise rates in December

The cost of money remains strong, with the fourth rising in 2018 expected to challenge Donald Trump's criticism


The US economy continues to grow rapidly. The labor market is boosted. And the Fed is on course for the fourth rising interest rate in 2018, challenging Donald Trump's criticism.

Wall Street has no particular reaction to the prospect of a new perception. Following the US vote, the American lists were low, with Dow Jones closing the session by 0.04%. Nasdaq and S & P 500 are negative, losing 0.53% and 0.25%.

At the end of the two-day meeting, postponed this month for Wednesday and Thursday to interfere with the midterm elections, the central bank leaves interest rates between 2.00% and 2.25% unchanged but opens the door to a new closure in December . & # 39; The unemployment rate has declined in recent months. Household expenses increased. Inflation is close to 2%. Risks to the prospects seem to be balanced, "the Fed said, seeing" further gradual interest rate hikes. "

The Fed has raised its cost of money eight times in the current economic cycle and is expected to rise again at its meeting on 18 and 19 December. According to analysts, there is in fact a 81% chance that the central bank will raise interest rates next month, despite the Trump's criticism and the trade war with China. The US president accused the Fed of being out of control, calling its "greatest threat". The critics who rejected the central bank repeatedly repeated, without turning to the advantages, being "out of the political process" and trying to continue doing what is right for the economy. The cycle of increases to which the Fed is committed remains, despite criticism, cautious and we are not seeing acceleration on the horizon.

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