That’s not a big surprise. The US Fed expectedly raised the rate to 0.75-1% per annum
Perhaps, the meeting of the US Federal Reserve System has become the most anticipated event in March. The bulk of experts agreed that you should not expect surprises after the meeting. And that’s what happened. By the decision of the US Federal Reserve, the interest rate on federal loans was raised by 0.25 percentage points.
As insiders inform, there was no debate on raising the interest rate inside the FOMC. All the members of the Federal Open Market Committee voted unanimously and only one member of the committee advocated for the preservation of the current rate.
According to the forecasts, in December, 2017 the US economy will experience another increase in the interest rate. Further, a smooth rate increase to 3% is being planned for the end of 2019. The FOMC states that inflation in the USA is under control (its value fluctuates around 2%), short-term risks have been balanced.
Forecasts for unemployment are also quite optimistic; the value of this indicator for the next two years should not exceed the level of 4.5%.
Also, the Fed positively estimates the growth rate of the US economy. For the year 2018, the growth is expected at 2.1%. Thus, the initial estimate of 2% was adjusted. The forecasts for 2017 and 2019 were not changed; the growth amounted to 2.1% and 1.9% respectively.
Such positive forecasts caused the expected strengthening of the US dollar position in the financial markets.
The material was prepared with the participation of Victor Kotov,
a leading analyst of the brokerage company VOSPARI.