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Stable interest rates: the Fed wants to be "patient" when interest rates change | 30/1/19

The US Federal Reserve has sent a strong signal for a breakthrough interest.

The monetary authorities want to be "patient" in future adjustments to the key interest rate, the monetary policy statement said. The previously contained excerpt, according to which a further increase in the interest rate is likely to be required, was dropped. In addition, the central bank lowered its assessment of the economic situation; After that, the economy becomes only "strong", and not "strong." As economists and stockbrokers widely expect, interest rates remain in the range of 2.25 to 2.50 percent. The decision was unanimous.

The Fed is expected to remain inactive for a longer period of time to wait for the effects of an already existing increase in interest rates. Fed Chairman Jerome Powell last saw his flexibility in money-credit policy proven; The Fed will respond as required by the current economic situation. In 2018, the Fed raised interest rates four times, each time by 25 basis points.

With regard to balance reduction, the Fed said it was ready for more flexibility if circumstances so required. In December, closely followed the shrinking portfolio after market players and the president Donald trump in wine growing market volatility.

Nick Timiraos


Source: fstockfoto / Shutterstock.com, the spirit of America / Shutterstock.com, Sasha Burkard / Shutterstock.com

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