日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Fed likely to hold interest rates steady: Analysts

By SCOTT REEVES in New York | China Daily Global | Updated: 2020-01-28 02:05
Share
Share - WeChat

The US Federal Reserve is likely to hold interest rates steady when it meets Tuesday and Wednesday in Washington, analysts believe.

The economy is strong and US-China trade dispute that roiled the economy last year has been calmed by the signing of a Phase One trade deal earlier this month.

As a result, the Federal Open Market Committee (FOMC) is likely to leave the federal funds rate at its current target level of 1.50 to 1.75 percent. The rate determines what banks charge each other for overnight lending, but also affects the cost of consumer debt and therefore influences spending.

The Fed is scheduled to announce its decision Wednesday.

"Economic conditions have changed little since the FOMC met in December, while financial conditions have eased significantly further," New York investment bank Goldman Sacks said in a research note to investors issued last week. "We expect minimal changes to the statement and for the policy guidance section to remain unchanged."

The Fed had raised rates nine times since December 2015. But in 2019, the Federal Reserve cut interest rates by one-quarter point in July, September and October amid slower US growth and fears of a global economic slowdown. However, notes of the deliberations released after the meeting showed some FOMC members disagreed with the action and saw no reason to cut rates.

In December, Fed Chairman Jerome Powell said the cuts had brought interest rates to an "appropriate place." This month, analysts believe he will face no challenges to leaving rates at current levels for the foreseeable future.

"Beyond the January meeting, we see a high bar for policy moves in either direction, and we expect the funds rate to remain unchanged in 2020," Goldman Sachs analysts David Choi and Jan Hatzius said in a research note.

"Comments from Fed officials suggest wide agreement that the policy rate is likely to remain unchanged for a while, and we expect this meeting to further cement the Fed policy outlook as firmly on hold."

Inflation remains below the target of 2 percent annually. This is good news for small savers because it means inflation won't erode returns and yields on certificates of deposit and savings account probably won't go much lower in the immediate future.

For businesses, it means the cost of borrowing remains low and predictable. The Fed hopes low rates will spur investment, expand the economy and create new jobs. US employment is near record levels — and President Donald Trump is expected to tout the strong economy during his re-election bid this year.

Steady rates are good for the stock market in part because winning investments offer higher returns than bank CDs or bonds. But prolonged low inflation might keep the public expectation low and this could make it harder for the Fed to get back to its 2 percent target, the Goldman Sachs analysts warned.

"We continue to believe the Fed will formally adopt some form of average inflation targeting, most likely a 'fuzzy' version which formalizes the committee's desire to have inflation run modestly above 2 percent in the strong part of the business cycle, but stops short of a mechanical commitment to make up for below-target misses."

The Federal Reserve, the US central bank and an independent agency, was created by Congress to provide the nation with a stable monetary system that fosters economic growth.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 欧美福利 | www.中文字幕 | 成人精品视频 成人影院 | av免费在线观看国产 | 成人久久久 | 羞羞电影在线观看 | 精品一区二区久久久久久久网站 | 国产a区| 一区二区三区四区在线 | 午夜精品久久久久久久久久久久久 | 青青青国产依人精品视频 | 国产中文字幕在线 | 欧美三级 在线播放 | 一区二区三区四区免费看 | 一级看片免费视频 | 亚洲AV久久无码精品九九九小说 | 日本视频在线免费 | 亚洲综人网 | 国产成人激情 | 欧美在线资源 | 日韩欧美在线看 | 久久人人爽人人爽 | 日本高清www午色夜黄 | 色综合天| 国产偷国产偷亚洲高清在线 | 国产精品视频一区二区三区 | 99爱在线观看 | 亚洲最大福利视频 | 97精品国产| 波多野结衣一区二区三区四区 | 国产高清一区二区 | 男女激情网址 | 一级特黄特黄毛片欧美的 | 欧美一级黄色录相 | 国产精品日本一区二区在线播放 | 亚洲 欧美 激情 小说 另类 | 久久久这里有精品999 | 99久久综合给久久精品 | 国产三级做爰在线观看∵ | 日本不卡在线一区二区三区视频 | 欧美伊人 |