As expected, the Fed raised interest rates for the
first time in nine years by 25 basis points to a level of 0.25% - 0.50%. Fed
reported that household consumption and business investment are solid, the labor market is strong and unemployment has decreased
significantly over the last year.
Fed predicts interest rates of 1.4% at the end of 2016, which alludes for four increases next year. The projections for the end of 2017 are for 2.4%, which is a minimal change from one increase less than previously forecasted.
Forecasts for GDP growth, unemployment and inflation remained unchanged or minimally revised. Inflation is expected to lead to steady growth in medium term to levels of 2%.
Overall monetary policy is expected to help further economic activity.
On foreign exchange markets the dollar remained strong this morning and pushed the euro to 1.0850 and climbed to 122.40 against the yen.
Gold retained gains after the increase in interest rates by the Fed.
Silver was traded in tandem with gold after finding good support.
Platinum is found some support from signals of increasing demand from European carmakers.
Fed predicts interest rates of 1.4% at the end of 2016, which alludes for four increases next year. The projections for the end of 2017 are for 2.4%, which is a minimal change from one increase less than previously forecasted.
Forecasts for GDP growth, unemployment and inflation remained unchanged or minimally revised. Inflation is expected to lead to steady growth in medium term to levels of 2%.
Overall monetary policy is expected to help further economic activity.
On foreign exchange markets the dollar remained strong this morning and pushed the euro to 1.0850 and climbed to 122.40 against the yen.
Gold retained gains after the increase in interest rates by the Fed.
Silver was traded in tandem with gold after finding good support.
Platinum is found some support from signals of increasing demand from European carmakers.
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