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GREAT AGAIN: Fed RAISES 2018 Economic Outlook, HIKES Interest Rates

GREAT AGAIN: Fed RAISES 2018 Economic Outlook, HIKES Interest Rates

The Fed was widely expected to raise interest rates Wednesday amid strong economic data. The Fed is raising rates gradually to keep the economy in check as inflation creeps higher and the job market grows even tighter. Borrowers are likely to see higher bills next month on credit cards and mortgages, especially those with adjustable rates.

It's the second rate hike under Powell, a Republican appointed to lead the Fed by President TrumpDonald John TrumpWhat you need to know about Tuesday's elections Danny Tarkanian wins Nevada GOP congressional primary Laxalt, Sisolak to face off in Nevada governor's race MORE.

A decade after the recession, the Fed has made progress on its objectives.

The unemployment rate is 3.8%, the lowest since 2000 and tied for the lowest reading since 1969.

Asian shares edged down on Thursday after the Federal Reserve raised interest rates and took a more hawkish tone in forecasting a slightly faster pace of tightening for the rest of the year, while concerns about U.S. And that means higher interest rates on plastic. "The Fed is prepared to be quicker about pushing rates higher".

Also notable was that the Fed deleted about 80 words of its statement that said it expected the economy to "evolve in a manner that will warrant further gradual increases" in rates.

Federal Reserve Chairman Jerome Powell speaks at a news conference following the Federal Open Market Committee meetings in Washington, U.S., March 21, 2018. This would improve the Fed's communication, Powell said.

In a stark reminder of the potential damage from the trade dispute, Hong Kong-listed shares of Chinese telecommunications giant ZTE Corp fell as much as 41.5 percent, wiping off about $3 billion of its market value, as it resumed trade after agreeing to pay up to $1.4 billion in penalties to the USA government.

A gradual rise in inflation is coinciding with newfound economic strength. In the longer run, it maintained the forecast for 1.8% growth. Year over year headline PPI jumped to 3.1% year over year versus 2.6% year over year, with the core rate at 2.4% year over year versus 2.3% year over year. "Economic activity has been rising at a solid rate". Job gains have been strong, on average, in recent months, and the unemployment rate has declined. The Associated Press reported that while there have been increases, commodities prices other than those for food and energy decreased by 0.3 percent in the past year. Fed officials repeated their assessment that "risks to the economic outlook appear roughly balanced".

The rate hike on Wednesday was the seventh in this cycle and effectively marked a shift to a neutral stance in which the policy rate matches inflation at just under 2 percent, leaving zero "real" accommodation.

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