Economic news

Federal Reserve under Powell will likely lift interest rates

The Fed will likely lift interest rates at the first gathering under the leadership of Jerome Powell and could announce that there’ll be more in view of tax overhaul and government expenditures, which might additionally fuel U.S. economy. 

The Federal Reserve forecasted at the end of 2017 three hikes of interest rates this year, though many investors say that the fiscal stimulus and signs of inflation pressures as of late will force officials to increase the count to four.

The Fed is expected to release the newest policy statement at 2 p.m. Eastern Time. A press conference with chairman Powell is to take place 30 minutes after that.

The Federal Reserve’s officials have discussed in the past weeks the issue that the stimulus might force bigger number of Americans into a labor market that is at the moment quite tight and bring up inflation to the level of 2%, which is the Fed’s target, or even higher in case the economy turns too heated.

However there is no unity among economists on whether the U.S. central bank, which is cautious so as not to make a wrong move at the start of new chairman’s command, will push up policy tightening expectations before price pressures show more prominently, particularly considering external economic risks like a potential global trade conflict.

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