The Federal Reserve makes its fourth rate hike of the year despite the threats of Trump

The Federal Reserve makes its fourth rate hike of the year despite the threats of Trump


Updated:

The Federal Reserve (Fed) has confirmed the fourth rate hike this year, just as it had planned. Specifically, it puts them in the range of 2.25-2.5%, despite the threats of US President Donald Trump, who has been very contrary to the policy of the Fed. Even so, the organism cuts two more rate hikes for 2019 of the three that were planned.

The Fed has concluded, after the conclave held between Tuesday and Wednesday, that "some gradual increases" will be consistent and will support the expansion of economic activity and labor market conditions.

The US labor market generated a total of 155,000 non-agricultural jobs last November and kept the unemployment rate at 3.7% (6 million unemployed), according to data from the Department of Labor.

The economy experienced an annualized growth of 3.5% in the third quarter of 2018, seven tenths below the expansion registered in the immediately preceding quarter, as well as the same previously advanced by the Office of Economic Analysis of the Government of the North American country.

On the other hand, the personal consumption expenditure price index, the preferred variable by the Fed to measure inflation, stood in October, the last data available, at 2% compared to last year. The monthly rate stood at 0.2% in the tenth month of the year, one tenth less than the previous month. Core inflation, which excludes energy and food prices given its greater volatility, also stood at 0.1% monthly, while the interannual rate rose 1.8%.

.



Source link