Fed surprised market rates remain at 0 0 25%

Fed surprised the market: rates remain at 0-0.25%

Yesterday the evening
Open Market Federal Reserve
system has completed a two-day meeting
and in the end not to touch base again became
interest rate. Rates remain
0-0.25% per annum. This is stated in a statement the regulator.
Economists at the Fed noted that growth
output and employment has slowed
in the I quarter, but the committee
still waiting for that under certain
steps of politicians, economic activity
will grow at a moderate pace.

According to the forecast of the central bank
The United States, the country’s inflation will remain
a low level in the near future, but
rate will gradually grow to
value of 2% – after the improvement of the situation
in the job market. when the Federal
Commission on the open market the US Federal Reserve
It announced that it retains interest
rates on hold, she
I commented on this decision and the current
situation in the country.

According to the statement,
Fed saw a slowdown in economic
growth in the country during the winter, explaining
it’s kind of temporary circumstances –
weather also bind reduction
growth and employment stabilization
unemployment. Simultaneously
Fed notes that since the previous
meeting of the Committee was reduced growth
American family spending, although
significantly increased real incomes
(Including due to the fall in prices on the
energy). Politicians believe that
Inflation will continue to grow steadily, although
until you notice the effect of compensation
inflation against the backdrop of falling oil prices
and lower import prices.

For the purpose of the Fed is still listed
to promote maximum employment
population and stability control
prices. And although the production and
Employment in the I quarter
declined, the Fed hopes that flexible
monetary policy will help to expand
economic activity sufficient
pace and after that grow
Labor market indicators up to acceptable
levels.

From the statement of the Federal Reserve also
it became clear that the duration of
terms of conservation interest
(0-0.25%) will depend on the
The US economy, the main factors
remain in the labor market,
inflationary pressures and inflation
expectations, financial and international
developments. The Fed will be ready to improve
rates when satisfied in the future
improvement in the labor market and
will be “fully convinced that inflation
begins to return to the target level
2% in the medium term. “

New Fed statement and
I was delighted and puzzled investors. FROM
on the one hand, from the text of FOMC statement
disappear any hints on the timing
the expected tightening of monetary
policy, on the other – the Fed acknowledged that
economy slowed the growth currently
time. Accordingly, the regulator waits
US GDP growth in the coming quarters.

Against the background of the results of the meeting
EUR / USD pair traded
at the levels of 1.1101, before rising to
1.1173 mark – at 18:30 MSK, according to
investing.com. Now
the pair remains at the level of 1.1102, falling
0.25% of the closing level of 1.1128.

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