Date: 2 months ago   Category: Economy

FRS tries to prolong the economic growth of the USA - Bloomberg


The Federal Reserve System left an interest rate without changes and has kept a course towards increase in December, despite recent disorders in the financial markets and criticism from the U.S. President.

"Economic activity grows at high rates, the steady growth of employment is observed, and unemployment rate has decreased", - has noted the American Central Bank in the statement following the results of a two-day meeting in Washington, having repeated the forecast "further gradual" increases in rates.

Risks for forecasts look "in general balanced", has declared Committee of FRS on operations in the open market, without having changed a formulation in comparison with the previous meeting at the end of September.

Inflationary expectations which, judging by some indicators, have a little decreased in recent weeks have been characterized as "in general a little changed". Leaving to

a door opened for increase in a rate, the fourth this year, in December, the regulator keeps a trajectory of gradual toughening of monetary policy, trying to prolong the period of economic growth, the second for duration, in the history of the USA and not to make at the same time mistakes.

Too soft monetary policy can warm up inflation and lead to formation of bubbles in the markets of assets whereas too fast toughening risks to cause recession.

Members of FOMC have made the decision on preservation of range of a rate of federal financing at the level of 2-2,25 percent unanimously.

Since the end of 2015 the Central Bank eight times increased the cost of loans on 25 basis points.

Earlier the U.S. President Donald Trump has criticized the Federal Reserve System for increase in interest rates this year, having said that it "has gone mad".

It already third increase in a key interest rate this year. The following increase is planned for December, 2018, three times will raise a rate in 2019 and one more time - in 2020. we Will remind

, the last cycle of increase in interest rates in the USA proceeded from June, 2003 to June of the 2006th year.

From that moment to 2015 of FRS consistently reduced the cost of money - at first accurate steps from 5,25% to 4,25% per annum (by the end of the 2007th year), then, against the background of the mortgage crisis gaining steam, - is sharper, to 3% by January and 2% - by April of the 2008th year.

Against the background of a collapse of the markets of the 2008th FRS has consistently lowered in the fall a rate to 1,5%, to 1%, and in December - to a historical minimum in the range from 0 to 0,25%.

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