September 26, 2018
The new range is between 2% and 2.25%.
The Federal Reserve (Fed) of the United States approved on Wednesday a new increase of 0.25% of interest rates. As a result of this increase, the rates will be in a range between 2% and 2.25%. It is the first time in more than a decade that they exceed 2%. It should be noted that this is the third increase of the year and of the eighth since the former president of the Fed, Janet Yellen, decided to put an end to the period of “types 0”.
His successor in the office, Jerome Powell, has stepped on the accelerator. The majority of the body’s experts foresee a further increase in December and an additional three in 2019, which would boost rates to 3.25%. Since taking office as president of the Fed, Powell has tightened monetary policy in all meetings except the July meeting. In the subsequent press conference, Powell said that the signals coming from the economy “are very good” and that, despite the current economic war, growth expectations remained stable. In fact, the Federal Reserve recently raised the forecasts for economic growth up to 3.1% this year, compared with 2.8% of the June estimates. By 2019, the evolution of GDP is now estimated at 2.5%, up from 2.4% three months ago.