Thursday , October 6 2022

The US economy is strong, the Fed will raise rates in December


Cost of money remains strong, and fourth growth in 2018 expected to challenge Donald Trump's criticisms


The US economy continues to grow at a fast pace. The labor market is strengthened. And the Fed is on its way to the fourth increase in interest rates in 2018, provoking criticism of Donald Trump.

Vall Street does not show any particular reaction to the look of a new understanding. After a rally in the US vote, US leaflets recorded low losses, while Dow Jones could close 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, it was postponed this month until Wednesday and Thursday, in order not to hinder midterm elections, the central bank leaves interest rates unchanged in the range of 2.00% to 2.25%, but opening the door to a new closure in December. "The unemployment rate has fallen in recent months, and household costs have increased," Inflation is close to 2%. "It seems that the risks for the look seemed to be in balance," the Fed said in a report showing "further gradual increases in rates."

The Fed has raised money costs eight times in the current economic cycle, and a new growth is expected at a meeting on December 18 and 19. According to analysts, there is an 81% chance that the central bank will raise rates next month despite criticism of Trump and the trade war with China. The US president accused the Fed of being out of control, calling it "the biggest threat". Critics rejected by the central bank that, without direct access to the merits, repeated on several occasions that they were "out of the political process" and tried to continue doing what was right for the economy. The growth cycle in which the Fed is dedicated remains, despite criticism, cautious and we can not see the acceleration on the horizon.

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