Fed raises rates for third time this year amid strong US growth

One more in 2018

Tom Eckett
clock
Fed chairman Jerome Powell
Image:

Fed chairman Jerome Powell

The Federal Reserve raised interest rates on Wednesday by 0.25%, while signalling another hike in December and three more next year.

As widely expected, the Federal Open Market Committee (FOMC) raised rates to a range of between 2% to 2.25%. This is the central bank's eighth rate hike since it began its current tightening cycle in December 2015. The FOMC dropped language in its latest minutes saying that "the stance of monetary policy remains accommodative". US markets could face pressure from 'Fed storm' factor In its latest quarterly projections, the Fed predicted GDP to rise to 3.1% this year, up from the 2.8% prediction in June, while the forecast for 2019 rose 0.1 percentage points (ppt) to 2.5%. Fede...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Labour leader Keir Starmer

Labour Party calls for extension of oil and gas tax

Suggests cap freeze at current £1,971

clock 15 August 2022 • 1 min read
Demand for key inputs will rise sharply, as nations look to accelerate their renewables programmes.
ESG

Greenflation: What are the drivers and how long will it last?

Metal price rises 'structural'

clock 12 August 2022 • 3 min read
The reduction was less than the 0.3% decline forecast by analysis

UK economy shrinks by 0.1% as cost-of-living crisis sets in

‘Difficult to dodge recession’

clock 12 August 2022 • 2 min read
Trustpilot