US Fed’s First Meeting in 2018 Did Not Bring Rate Hike
During a two-day meeting, the US central bank left interest rates unchanged, indicating that their further increase is justified. According to the official statement of the Federal Open Market Committee (FOMC), the central bank still intends to make the next rate increase in March. This meeting was the last for Fed Chairman Janet Yellen, whose powers expire on February 3. The new head of the central bank will be Jerome Powell.
The rhetoric of the official statement remained virtually unchanged from the previous meeting, pointing to a positive assessment of the prospects for the US economy. The politicians admitted that the core inflation ceased to decline, which allows them to hold the opinion that inflation will be strengthened this year, and then stabilize at about 2%. Moreover, the Fed noted that market-based measures to compensate for inflation have increased in recent months, but remain low.
The regulator expects that with the gradual adjustment of monetary policy, economic activity in the US will increase at a moderate pace, and labor market conditions will remain favorable.