DJIA25585.69
LIVE95.22(0.37%)
NDX7300.96
LIVE-6.97(-0.10%)

Fed Minutes Show Officials Unsure on Need for Rate Hikes in 2019


Thursday, 21 February 2019 02:26 WIB

Federal ReserveThe FedEkonomi AS


c_740_198_16777215_00_images_assets_EKONOMI3_mengenal-siapa-itu-the-fed-as-119927-1.jpg

Minutes of the Federal Reserve’s January meeting showed officials debated whether increases in borrowing costs might be needed later this year, shedding additional light on the central bank’s pivot away from projecting gradual interest-rate hikes.

“Many participants suggested that it was not yet clear what adjustments to the target range for the federal funds rate may be appropriate later this year,” according to the record of the Federal Open Market Committee’s Jan. 29-30 gathering released Wednesday in Washington.

While several said rate hikes might be necessary “only if inflation outcomes were higher than in their baseline outlook,” several others said that if the economy evolved as expected, higher rates would be appropriate later this year, the minutes said.

The minutes elaborated on the dovish message delivered three weeks ago when the FOMC said it will be “patient,” signaling it had put interest-rate hikes on hold and was prepared to be more flexible on shrinking the balance sheet.

Chairman Jerome Powell underscored the message in his Jan. 30 press conference by saying the Fed would be patient in deciding when and how to adjust policy in the face of a mounting set of risks, including slowing growth in China and Europe, Brexit, trade negotiations and the effects of the five-week U.S. government shutdown. The FOMC unanimously decided to leave the benchmark interest rate unchanged in a range of 2.25 percent to 2.5 percent.

Source : Bloomberg


RELATED NEWS

POPULAR NEWS

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.