Sunday , June 13 2021

The Fed intends to continue raising interest rates despite Trump's criticism: economy and business



WASHINGTON, November 8 / Tass /. The Federal Reserve of EE. The U.S., which acts as the central bank, intends to further increase the basic interest rate, while the American leader, Donald Trump, has strongly criticized this approach. The financial regulator informed his plans in a statement released Thursday after a meeting of his leadership – the Federal Committee of Open Market Operations.

"The Committee hopes that a gradual increase in the basic interest rate will correspond to a constant increase in economic activity, a favorable employment environment and an inflation rate," whose objective will be 2% in the medium term.

The Fed noted the high growth of the US economy and indicated a decrease in unemployment. "The labor market continues to strengthen, and economic activity is growing rapidly," the document says. The financial regulator notes the dynamic growth in the number of jobs in recent months. The committee called the risks to the prospects for the development of the "generally balanced" American economy.

At the same time, as the Central Bank has indicated, the growth of investment in capital assets has become more moderate compared to the fast pace at the beginning of the year. Local observers believe that this can lead to a slowdown in economic growth. However, "family spending continues to grow rapidly."

At the same time, in today's Fed management day, the basic interest rate remained at 2-2.25% level. Your next increase is expected in December.

Previously, the president of the United States, in an interview with the newspaper The Wall Street Journal, said that he may already regret his decision to appoint Jerome Powell as president of the Fed, since it has been delayed too much with the rise in the base interest rate. Trump criticizes Powell for his policy of gradually increasing the base interest rate. According to Bloomberg, the head of state, naming Powell for the position of president of the Fed, believed that he would be a supporter of keeping the low rate, but found out with disappointment that this was not the case.


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