US Federal Reserve could signal no rate hike through 2020
The Federal Reserve is set to leave its benchmark interest rate unchanged Wednesday and will likely signal that it expects rates to remain low well into next year despite a robust job market, APA reports citing The Star.
Many economists have said they think sluggish growth will even compel the Fed to cut rates at least once in 2020.
A forecast from the Fed for continued low rates would reflect how its assessment of the economy is evolving. Persistently low inflation with very low unemployment has increasingly led many Fed officials to conclude that rates can remain lower for much longer than they thought without spurring higher prices.
After having raised its benchmark short-term rate four times in 2018, the Fed reversed course this year and cut rates three times to a range of just 1.5% to 1.75%. Chairman Jerome Powell has portrayed those cuts as mainly “insurance” against a slowdown resulting from weak global growth and President Donald Trump’s prolonged trade war with China.
Powell and other Fed policymakers have made clear that they are no longer worried that a healthy job market will necessarily fuel excessive inflation. Instead, they would like to see inflation reach their 2% target level after running below it for most of the past seven years.
Even with unemployment at a 50-year low of 3.5%, the Fed’s preferred inflation gauge showed prices rising by just 1.3% in October compared with a year earlier.
Each quarter, the Fed issues its policymakers’ forecasts of the economy and its own rate policies. On Wednesday, when its latest meeting ends, the Fed is expected to project that its benchmark rate will remain unchanged through next year.
Tame inflation and ultra-low unemployment have led Fed officials to rethink their view of the so-called “neutral rate.“ This is the point at which the Fed’s key rate is believed to neither accelerate economic growth nor restrain it. The neutral rate typically shouldn’t change very often or very much. But the Fed’s policymakers estimate that the neutral rate is now 2.5%, down from 3% as recently as September 2018.
Coordination Headquarters established in the liberated territories of Azerbaijan to resolve issues in a centralized manner
Azerbaijani President signs order on designing and construction of Barda-Aghdam railway line
WHO: Europe could be hit by 3rd wave of COVID
Galatasaray shares post on Azerbaijani martyr
Earthquake hits Caspian Sea
Anglo Asian Mining cuts gold production forecast for Azerbaijan
Ali Rabii: “Iran develops bilateral relations with Azerbaijan”
Azerbaijani community protests against opening of "Artsakh" office in Brussels and establishment of diplomatic relations with the so-called regime
Azercell’s Mobile Eye Clinic joins campaign for IDPs initiated by the UN - PHOTO
Armenia's economy minister resigns
Ahmadbayli-Fuzuli-Shusha highway project launched
International Emmy Awards winners unveiled
Iran reports 483 coronavirus related deaths over past day
Azerbaijani servicemen help Armenians to leave Gulabli village of Aghdam - VIDEO
Armenia seriously damaged the appearance of Askeran fortress
Putin cannot volunteer for COVID-19 vaccine trials as president, says Kremlin
Turkish FM: “Both friend and enemy saw that path to peace and stability passes through Turkey"
Turkish FM: “We said that every result that Azerbaijan will accept is our acceptance”
Cavusoglu: “Relations with Russia is an important side of Turkey’s foreign policy”
Turkish Ombudsman Institution to disseminate war crimes conducted by Armenia against Azerbaijan to the world
Blood Bank: People, recovered from coronavirus, can be a donor for patients in severe condition
French deputy: “Government has right to put veto on resolutions regarding recognition of so-called “Nagorno Karabakh Republic”
Leaders of religious confessions in Azerbaijan issue joint statement on the destruction of our religious monuments in Karabakh
Archaeological findings of Azykh cave brought to Baku
Azerbaijani President: "The ruined city of Aghdam is a witness to Armenian atrocities"
President Ilham Aliyev: "Kocharyan and Sargsyan, you have knelt before us"
Date of next meeting of Azerbaijani Parliament unveiled
Russia registers 24,326 COVID-19 cases in past 24 hours
Azerbaijani President: "Nobody helped us, on the contrary, they only wanted to hamper us, I will talk about this in detail one day"
Azerbaijani President: "We have given and will give the answer to those who want to interfere in our work"
Azerbaijani President: If Pashinyan had listened to me, he would not be in such a bad situation now
Azerbaijani President: "Our international authority is quite high, and it has played a special role in having this conflict resolved"
Martyr Colonel Babek Semidli buried - PHOTO - UPDATED
Azerbaijani President: "Some international organizations did not want to call the aggressor by its name"
Commander-in-Chief of the Armed Forces: "Agdam operation was part of our plans, we would have taken Aghdam anyway"
Azerbaijani President: "We have created a legal basis for resolving the conflict over the past 17 years"
Azerbaijani President: Today we do not depend on anyone economically
Azerbaijani President: "The victory on the battlefield made it possible to liberate Aghdam district, as well as Kalbajar and Lachin districts, without firing a single shot and without anyone becoming a martyr"
EBRD allocates loan of EUR 10 million to Ganja city of Azerbaijan
President Ilham Aliyev and First Lady Mehriban Aliyeva visited the liberated city of Agdam - UPDATED
Russian warship stops US destroyer from violating Russia’s border
IATA promotes digital ‘Travel Pass’ to restart international travel shut down by pandemic
Some deputies infected with coronavirus, says Azerbaijani Parliament’s speaker
Armenia's coronavirus death toll reaches 2,002
Georgia records 3128 coronavirus cases, 39 deaths over past day
Meeting of Azerbaijani Parliament kicks off
Red Cross to increase its presence in Karabakh
President Ilham Aliyev: “It was the Republic of Turkey and my brother President Recep Tayyip Erdogan that supported us morally and politically for 44 days”
Azerbaijani President: Many experts note that Azerbaijan has waged a war of XXI century
Elon Musk surpasses Bill Gates to become the world’s second-richest person
Mehriban Aliyeva: Glory to the Azerbaijani flag, the Azerbaijani soldier, the Azerbaijani people - VIDEO
Azerbaijani President: Let the whole world see how the savage enemy destroyed our villages
Ilham Aliyev: "Enemy will be held accountable for all war crimes" - VIDEO
President Ilham Aliyev and First Lady Mehriban Aliyeva visited Agdam - VIDEO
Armenians target Azerbaijan's residential settlements, civilian population, and civilian facilities - PHOTOSESSION
Azerbaijani MP suggests to establish shelters for beggars
Azerbaijan commemorates Khojaly genocide - PHOTOSESSION
14 years pass since establishment of the Ministry of Emergency Situations: They always come to your aid in any difficult moments - PHOTOSESSION - VIDEO
First Vice-President Mehriban Aliyeva attended opening ceremony of rebuilt Azerbaijan pavilion at Exhibition of Achievements of National Economy in Moscow - UPDATED
Special quarantine regime in Azerbaijan extended until December 28
Prosecutor General’s Office: Most of the videos about insulting actions against the corpses of Armenian servicemen are fake
Major General rank conferred to Kanan Seyidov- ORDER
More than a hundred people have contracted an unknown disease in Senegal