Fed lifts interest rates, no longer says policy is 'accommodative'
Source: MarketWatch
WASHINGTON (MarketWatch) - The Federal Reserve voted unanimously to lift a key U.S. interest rate by a quarter point, but the central bank is sticking to its gradualist strategy of raising the cost of borrowing. The Fed predicts one more rate hike by December and three more in 2019, unchanged from its prior forecast. After a two-day meeting, the Fed on Wednesday raised its short-term fed funds rate to a range of 2% to 2.25%, marking the highest level in a decade. In a surprising twist, though, the Fed dropped longstanding language from its policy statement saying its monetary policy "remains accommodative." The removal of that phrase suggests the Fed could even pause at some point to assess the effect of is actions on the economy. The FOMC boosted its forecast for U.S. growth in 2018 to 3.1% from 2.8%, but it expects GDP to eventually slow to as low as 1.8% by 2021.
Read more: https://www.marketwatch.com/story/fed-lifts-interest-rates-no-longer-says-policy-is-accommodative-2018-09-26
= new reply since forum marked as read
