Summary for the 31th of January 2019
At the Federal Reserve rate decision, the Fed, no surprisingly, announces that it will be patient with raising interest rates. Fed’s description of the current economy is still the same as in December. In December, the Fed described the economy as “strong”, now it says the economy is “solid”. It continues and says that the consumer spending and the job gains have been growing strong also the unemployment rate remains low and the inflation near Fed’s objective of 2 percent . It (The Fed) says that in the light of the global economic and financial development and muted inflation pressures, it will be patient when determining future interest rates. At the press conference Jerome Powell mentions a tighter financial condition, weaker global economic growth, uncertainty about government shutdown, the Brexit, and that these obstacles (cross currents) can hurt the US economy. He continues and says that the risks of keeping low interest rates have subsided and the risks of high sto