U.S. Federal Reserve has increased the interest rates
Yesterday the leaders of the U.S. Federal Reserve decided to raise the basic interest rate from 0.5-0.75 to 0.75-1%. This is the first rate increase since December of 2016. According to the Head of the FRS Janet Yellen, this decision reflects the steady growth of the U.S. economy and significant progress in achieving the Federal Reserve main goals: price stability and full employment.
At yesterday's FRS meeting, also the issues of reducing the U.S. Central Bank assets were discussed, however, no significant decisions were accepted on this issue. Yellen underlined that during the meeting, almost no attention was paid to the reforms in the tax and budgetary policy spheres, which Donald Trump intends to introduce. This is due to the fact that the FRS's macroeconomic projections have remained almost unchanged. Besides, the Presidential Administration hasn't provided the details of these reforms yet.
According to the Federal Reserve forecasts, in 2017 the interest rate will rise two more times. The growth rate of the U.S. economy to 2018 from 2 to 2.1% was also revised, reflecting positive sentiment in the business community and the steady growth of employment in the country.