The fed has the power

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The fed has the power. New Chapter will continue the previous policy that has left recently, but expect a much more vivid actions. Time for cautious movement in U.S. economic policy ends and requires a new strategy for the development of the entire economic base of the country. In the first speech of the new head of the fed Jerome Powell in Congress, which will take place this week, the fed will report on monetary policy. The fed continues to forecast that US inflation will approach the target of 2% in the current year. Index PCE Core (Personal Consumption Expenditures, Excluding Food & Energy), which draws the attention of the fed when assessing the risks of inflation in December 2017 rose 1.7% in annual terms.
The rate of increase of salaries in the US are not too quick, despite a very low unemployment rate. In the report, the fed sounds a very careful assessment of the situation. The leaders of the fed noted, in particular, technological changes that, in their opinion, may contribute to maintaining low inflation around the world. The fed expects that, with further gradual adjustment of monetary policy, economic activity will continue to increase at a moderate pace and the labor market will remain strong. Inflation is expected to increase this year and stabiliziruemost about 2 per cent target over the next few years,” – noted in the fed.
Of course, the fed already published before submitting to Congress the report did not provide a clear indication of the desire of the monetary authorities of the United States to accelerate the pace of raising its benchmark interest rate in 2018. It may be raised this year two or three times depending on the current state and projections for the U.S. economy. At the same time, the fed expresses doubt about the significant increase in the rate of inflation in the United States, which in recent times are the investors concerns. These statements are not strongly correlated with the supply of U.S. Treasury G. Mnuchin, which expects a further weakening of the dollar and increase in inflation rate this year, so you can see that the split in the country after the inauguration of President trump continues to grow even in the financial sector.
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Nikolay Shiryaev
Expert
“International financial center”