WASHINGTON: The US Federal Reserve will wade into a charged political atmosphere on Wednesday, with another interest rate hike likely but accompanied by a strong sign it will hold off on further increases. While economic conditions have not "changed enough yet to cause a dramatic slowing in growth" of the US economy, "Fed officials are widely expected to deliver a 'dovish hike,'" Jim O'Sullivan of High-Frequency Economics said. That entails raising the benchmark interest rate to 2.5 percent from 2.25 percent but removing language from the statement that had for months promised "further gradual increases." Powell in recent statements shifted gears to indicate the central bank is considering suspending its rate increases while it takes time to view more economic data. Trump has repeatedly broken with the norm respected by US presidents of recent decades who refrained from criticizing the Fed.

Source: Bangkok Post December 19, 2018 14:15 UTC