Economic news

Fed will likely retain same interest rates after Yellen leaves office

The U.S. Fed will likely retain interest rates at the previous level today, meanwhile showing signs of a step-by-step tightening of monetary policy in 2018 as the American economy keeps thriving and jobs growth goes on steadily.

Investors will pay attention to the Federal Reserve’s evaluation of inflation, standing firmly lower than the targeted 2%, the expected risks to the economic prospects, and influence of tax overhaul.

The central bank of the U.S. is about to make a statement after its gathering at 2 pm Eastern Time. This policy gathering is final for Janet Yellen, the outgoing chief of the Federal Reserve.

Jerome Powell, coming to her place, has worked together with Yellen and is on the same page as to the support of gradually rising trajectory of rates, which would help drive the unemployment down onwards, cajole people into work again and boost wage growth.

Powell is to take office in just several days, but experts forecast no pivotal changes from the Federal Reserve today.

The rates were hiked three times in 2017 and at the moment three more are planned for this year. However, this prediction, widely shared on Wall Street, will depend on a lengthy rise of inflation.

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