Fed statements about global risks reduce the chances of a rate hike in March – analysts
A senior economist at Moody’s Analytics Inc. Rayan Suit believes that the leadership of the US Federal Reserve (Fed) has paved the way for a possible change in the economic outlook for this year and a slowdown in the tightening of monetary policy, reducing the likelihood of a new increase in interest rates in March.
"The Fed has entered standby mode, – he said. – They want to see whether the situation will affect the global economy and financial markets on inflation and economic outlook".
"The statement the Fed reduced the likelihood of the March increase, showing that the committee members are not so sure" in the chosen strategy, he noted US economist at BNP Paribas (PA: BNPP) in New York, Laura Rosner.
According to her, the timing of a new tightening of monetary policy "It depends on the statistics and the economic outlook, and in this respect there are differences. The statement simply reflects this", Reported Bloomberg.
The Federal Open Market Committee (FOMC) January 27 left the interest rate on federal credit in the target range of 0.25-0.50% per annum and reported that "closely following the global economic and financial developments and assess their implications" for the US economic outlook.
In December, the median forecast of members of the American Central Bank assumed GDP growth of 2.4% this year and increase the key rate by the end of the year by 1 percentage point – to 1.4% per annum.
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