Will US Fed Meeting Bring Any Surprises?
Currently, the focus is on the meeting on the monetary policy of the US Federal Reserve System, which will end today. It is expected, that the Federal Reserve will leave interest rates unchanged. Investors will look to the policy statement for fresh hints on the forecast for an increase in interest rates this year, and will focus on the inflation rate. This meeting of the US Federal Reserve is the last under the leadership of Janet Yellen.
The Fed raised rates three times last year and is currently planning three more increases in 2018. But this forecast will depend on the continued increase in inflation. The US economy added about 10 million jobs, and the unemployment rate fell to a 17-year low of 4.1% over the four-year term of office of Janet Yellen. The US economy grew by 2.3% last year.
Analysts suggest that the new head of the regulator, Jerome Powell, will not dramatically change the bank's policy. The future policy of the regulator will be significantly influenced by the tax reform of US President Donald Trump, the growth rate of the US economy and the dynamics of inflation.