WELCOME TO CRISISFORUMS.ORG!
(1) Please swing by our "HELP CENTER" to view our forum rules prior to commenting.
(2) Acknowledge that by commenting or posting, you take full responsibility for the content and message of the information you put forth, which do not necessarily reflect the opinions of this website.
(3) If you would like to post your own discussion threads, just contact one of the staff so we can verify you as a human.

US Federal Reserve raises interest rates to 1% in bid to hold off inflation

US Federal Reserve raises interest rates to 1% in bid to hold off inflation

Fed chair says US economy in strong health as she announces third rate rise since 2008 and the first of several expected this year

  • from The Guardian
Janet Yellen, chair of US Federal Reserve, announced interest raise rise from 0.75% to 1% on Wednesday. Photograph: Michael Reynolds/EPA

Phillip Inman and Sam Thielman

Thursday 16 March 2017 05.10 AEDT Last modified on Thursday 16 March 2017 10.25 AEDT

The US Federal Reserve has sought to head off rising inflation with a third interest rate rise since the 2008 financial crash and the second in three months, taking the base rate from 0.75% to 1%.

The central bank set aside concerns about the impact of higher interest rates on consumer spending to confirm analyst projections that it is prepared to increase rates several times this year to keep a lid on inflation as it rises above its 2% target level.

The Fed’s chair, Janet Yellen, said a wide range of indicators showed the US economy was in rude health, allowing its interest rate setting committee to push rates back towards historically normal levels. Policymakers voted nine to one to raise rates.

Speaking after the decision, Yellen said she had met Donald Trump’s treasury secretary, Steven Mnuchin, “a couple of times” but had only been “introduced” to the president himself.

“I fully expect to have a strong relationship with secretary Mnuchin,” she said. “We had good discussions about the economy, about regulatory objectives, the work of the FSOC [Financial Stability Oversight Council] global economic developments, and I look forward to continuing to work with him.” She said she had had a very brief meeting with Trump “and appreciated that as well”.

READ MORE:

https://www.theguardian.com/business/2017/mar/15/us-federal-reserve-raises-interest-rates-to-1



"We are shaped by our thoughts; we become what we think. When the mind is pure, joy follows like a shadow that never leaves."

Sign In or Register to comment.