As Fed reiterates rate pause, forecasts likely to be blown off course
(Worthy News) – Friday’s booming U.S. jobs report should give the Federal Reserve all it needs to stick to its plan not to cut interest rates further in the near future, so when U.S. central bankers meet this week, most of the focus will be on their outlook for next year and beyond.
The Fed has made clear that it plans to stand pat on rates barring a “material” change in the U.S. economic outlook. Policymakers will assess how the three interest rate cuts they’ve implemented this year, most recently at the last meeting in October, filter through the economy over the coming months.
Those cuts were characterized as a pre-emptive mini-boost to the world’s largest economy to mitigate the effects of slowing global growth and a 17-month-long U.S.-China trade war. The Fed hoped to offset fears that a recession in manufacturing and a drop in business investment could spread malaise to the wider economy. [ Source: Reuters (Read More…) ]