Powell marks start of Fed tenure with rate rise

It's not whether the Fed will hike rate — it's how many times

USA indexes lifted following the announcement, with the Dow Jones rising as much as one per cent.

Naturally, the positive showing also helped to bolster hopes that the Bank of England (BoE) will raise interest rates again in May, shoring up demand for the Pound (GBP) once again.

The Central bank hiked short-term interest rates by a quarter-point and predicts that rates will rise higher than previously expected in the coming years.

But because inflation has run below the Fed's target since they formally adopted it in 2012, markets don't have a good read on how policy makers would chart interest rate policy when inflation is above the target. Of the 15 Fed board members, six anticipate the Fed will hike four times this year and one believes five hikes will be necessary.

The S&P 500 Index of U.S. stocks were higher after Powell spoke, while the yield on 10-year U.S. Treasury notes were around 2.89 per cent, little changed from Tuesday.

"I remember that old saying, 'The best time to plant a tree was 20 years ago, and the second-best time is now, ' " he said.

But there's also a silver lining for savers: Because interest rates have been low for years, it's been tough to gain much extra ground in the form of interest when stashing away cash in savings accounts. The Fed is widely expected to raise rates, and investors will be watching closely for clues about how many more increases the central bank may make this year and also for the Fed's assessment of how the economy is doing. In fact, Powell told Congress recently that, in his personal view, the economy has strengthened since December, when Fed officials last updated their forecasts for the economy.

In its first policy meeting under new Fed chief Jerome Powell, the US central bank said inflation should move higher amid a stronger economy after years below its 2 percent target. Tighten too quickly and inflation may not meet its target of 2 percent - the level the Fed sees as healthy for the economy.

More news: California Teacher Fired After Bashing Military 'Dumbsh*ts'
More news: HTC Vive Pro Launches in April for $799, Only Includes the Headset
More news: Academy president accused of sexual harassment

The upward revision in their rate path suggests Fed officials are looking through soft first-quarter economic reports and expect a lift this year and next from tax cuts passed by Republicans in December.

In its statement the Fed said the economy had been expanding at a "moderate" rate and noted a slowdown in household and business investment.

A healthy job market and a steady if unspectacular economy have given the Fed the confidence to think the economy can withstand further increases within a still historically low range of borrowing rates. Growth will be 2.4 percent next year, the Fed expects, up from 2.1 percent.

Fed officials were split on whether this week's policy meeting was the appropriate time to signal a fourth rate hike in 2018.

Economists are wondering whether faster economic growth might cause the Fed to pick up the pace of its rate hikes. The Dow Jones industrial average was up 140 points, or 0.6 percent; it had been up 210 just before the announcement.

Federal Reserve Chair Jerome "Jay" Powell also sounded a warning about rising trade tensions.

U.S. officials are tipped to confirm on Thursday additional investment restrictions on China to help close, what it says, is a $375bn trade deficit with the world's second largest economy.

Related News:

Most liked

PCP: Who will win the NCAA Tournament?
Taking out the toss-up games - 8 vs. 9 seeds and 7s vs. 10s - six of the other 24 first-round matchups were won by the lower seed. The ACC has four of the 16 teams left, but Duke provides the conference with their best hope for a title.

YouTube Simplifies Livestreaming Process From Computers, Webcams, And Android Camera Apps
YouTube is building up a paid service with reduced ads as well as exclusive playlists, videos, and other content. YouTube has quietly rolled out a new policy banning videos that promote gun sales.

Bill Polian to help form new spring pro football league
I do have one suggestion to those at the Alliance of American Football and that is to do something about shortening that name. Teams will be required to attempt 2-point conversions from the 2-yard line rather than kick extra points.

Uber Driverless Car Kills Woman in Arizona
Among them: General Motors Co, Alphabet Inc's Waymo unit, ride services company Lyft, Ford Motor Co and others. Analysts and experts said the fatality involving Uber could slow progress toward deployment in the sector.

Former Playboy sues after her alleged affair with Trump wasn't published
But, the company did not run any stories on the story - a tactic The New Yorker notes media outlets commonly use to kill a story. Trump is counter-suing Daniels for $20 million - the amount his lawyers say is the number of times she broke the agreement.

Close aide replaces ailing Syed Geelani as TeH chief
The assumption is that Sehrai will one day succeed Geelani as the head of the Hurriyat Conference in the future. Geelani's two sons Nayeem and Naseem Khan were recently called by NIA regarding the Kashmir terror funding.

Pakistani model Alishba reveals that she met Shami in Dubai
She also claimed that she met him the next morning at around 9 am, and claimed that she had breakfast with him. Shami is heard saying another person by the name of "Mohammad Bhai" had sent money to Md.

Donald Trump pushes drug dealer death penalty
However, he has received criticism from certain sections for allegedly taking only limited actions to address the crisis. Other Republicans who are considering challenges to the president have already started visiting the New Hampshire.

Vivo X21 and X21 UD goes official in China with Jovi
The Vivo Y85 will be featuring the Qualcomm Snapdragon 450 chipset which is paired with 4GB of RAM and 64GB internal storage. The phone also comes with dedicated AI based camera features such as scene detection to recognise 17 different scenes.

Pakistan's top security official visits Afghanistan today for crucial talks
But Interior Ministry spokesperson Najib Danesh said that no contractors were killed in the attack. Taliban spokesman, Zabihullah Mujahed, claimed responsibility for the attack in a statement.

Investors mull trade, White House changes as trading week winds down
McMaster - contrary to reports they have a good working relationship and there are no changes at the NSC", Sanders wrote. McMaster could be the latest Trump official to step down even though the administration is denying such speculation.

Russian Federation will 'of course' expel British diplomats after United Kingdom move: Lavrov
Mirzayanov revealed details of Russia's chemical weapons in the 1990s because he said he was afraid of their impact. Russia's top agency for major crimes was also investigating the attack on Yulia Skripal, who is a Russian citizen.

Ireland do not need extra motivation, says Jones
The video shows Jones giving a talk on leadership for Fuso, the Japanese parent company of England sponsors Mitsubishi. In the lecture, Jones told an audience: "We've played 23 tests and have only lost one test to the scummy Irish ".

Documents link Trump Organization lawyer to effort to silence porn star
Daniels' lawyer, Michael Avenatti , confirmed the authenticity of the new documents to the Associated Press. Avenatti did not answer questions about the number of women, or the nature of their allegations.

DeVos gets cold shoulder from White House after interviews
Asked if the public schools in MI performed better after she advocated for school choice there, DeVos answered, "I can't say overall that they have all gotten better".

Most Commented