/ world right now information/ After the assembly on September 17 and 18, the Federal Reserve of the USA diminished the primary rate of interest by 25 foundation factors – to 1.75-2% from the extent of 2-2.25% per yr, the regulator wrote in a message to the media.
The choice matched the forecasts of most analysts.
Through the July assembly, the regulator lowered the primary rate of interest by 25 foundation factors for the primary time within the final ten years. For a few years, the Federal Reserve has both stored or raised rates of interest. In 2007-2008, the Federal Reserve lowered the rate of interest till it reached the minimal mark of 0-0.25% in December 2008.
In 2018, the Fed raised the rate of interest 4 occasions – in March, June, September and December. The final time the speed was raised in December 2018 by 1 / 4 of a share level to 2.25-2.5% each year.
As famous, the US Fed maintains inflation forecasts at 1.8% in 2019.
The Federal Reserve additionally raised its forecast for US GDP progress in 2019 from 2.1 to 2.2.
The Fed forecast the US unemployment charge in 2019 to be 3.7%, up from the earlier forecast of three.6%.
Key indices fell on US inventory markets after the Federal Reserve reduce rates of interest.
The American industrial index Dow Jones decreased by 51.73 factors, the S&P 500 index, which incorporates the five hundred largest corporations on the US market, decreased by 10.89 factors.
Key indexes fell on Wednesday throughout the buying and selling session on the New York Inventory Trade in gentle of the choice by the US Federal Reserve to chop the important thing rate of interest. That is evidenced by the information positioned on the web site of the buying and selling platform.
As of 14:05 Jap American time (21:05 Bulgarian time), the American industrial index Dow Jones decreased by 51.73 factors (0.19%) and stopped at 27059.07 factors. The S&P 500 index, which incorporates the five hundred largest corporations on the US market, fell by 10.89 factors (0.36%) and ended up at 2,994.81 factors. The Nasdaq digital trade index fell by 54.64 factors (0.67%) to eight,131.37 factors. The buying and selling session continues to be ongoing.
The Federal Reserve performs the capabilities of a central financial institution. As specialists predicted, on Wednesday he introduced a reduce in the primary rate of interest by 1 / 4 of a share level to 1.75-2%.
US President Donald Trump as soon as once more criticized the Fed, in addition to its chairman Jerome Powell, despite the fact that the monetary regulator determined to chop the important thing rate of interest for the second time this yr. The American chief printed the related message on Wednesday on his Twitter account.
“Jay Powell and FR have failed once more. They haven’t any braveness, no sense, no imaginative and prescient. Horrible,” the president wrote.
Earlier, the president referred to as on the Federal Reserve to drop the rate of interest to zero and even make it adverse, and likewise to begin refinancing the federal government debt.
The US Federal Reserve reported on Wednesday a discount in funding within the entrepreneurial sector in fastened capital.
“Though family spending is rising at a fast tempo, the entrepreneurial sector’s investments in fastened capital and exports have declined,” mentioned an announcement launched after the assembly of the monetary regulator’s administration. After the earlier assembly held on the finish of July, the Fed once more reported weak progress in fastened capital funding.
On a 12-month foundation, the general degree of inflation, excluding meals and vitality, will probably be beneath 2%. Market-based measures of inflation compensation stay low,” famous the Federal Reserve.
Translation: V.Sergeev
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