Date: 4 weeks ago   Category: Financial

The Federal Reserve System of the USA kept a base interest rate


The key interest rate remained at the level of 2.25-2.5% per annum. The last increase was in December, 2018. The Federal Reserve System (FRS) of the USA kept a base interest rate at the level of 2.25-2.5%. It is said in the statement of the regulator following the results of a meeting on June 18-19. In release of FRS it is noted that for ensuring the maximum employment and price stability the target range of a rate on federal funds remains at the level from 2.25 to 2.5%. It is emphasized that the Federal Reserve System of the USA does not expect reduction of a base interest rate this year, but predicts its decrease for 2020. Also the updated forecast for the key macroeconomic indicators according to which the forecast of GDP growth of the USA in 2019 remained at the level of 2.1% was published, the forecast for 2020 increased from 1.9% to 2%. The forecast of inflation of the USA for 2019 was reduced to 1.5% from 1.8%, for 2020 − to 1.9% from 2%. Unemployment rate in the USA, according to forecasts of the regulator, will decrease to 3.6% in 2019, and will be at the level of 3.7% in 2020. FRS still sees a possibility of growth of the economic activity of the USA, labor market and also the rate of inflation close to 2%, however uncertainty concerning this forecast increased and further decisions will be made depending on circumstances. FRS is the independent federal agency which vypolyat functions of the central bank and exercises control over a commercial banking system of the USA. A base rate – percent under which banks grant each other the unsecured loans for one day. Increase in a rate leads to leaving of investors in assets of the USA that means strengthening of dollar exchange rate and reduction of prices of raw materials. Let's remind, in 2018 FRS raised a rate four times: in March − up to 1.5-1.75%, in June − up to 1.75-2%, in September − up to 2-2.25% and in December − up to 2.25-2.5%. Earlier American leader Donald Trump said that only problems of economy of the USA are the Federal Reserve System of the country. Also he called increase in a key interest rate of FRS the main threat to progress of the presidential term. News from the Correspondent.netv of Telegram. Subscribe for our https://t.me/korrespondentnet channel

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