Fed to hold fire on interest rates as world economy slowsBy The Manila Timeshome/News/Latest Stories/Today's Breaking News/Fed to hold fire on interest rates as world economy slowsWASHINGTON, D.C.: There is virtually no chance the US Federal Reserve will raise interest rates in the coming week, since policymakers have all but promised to hold their fire as the global economy slows. Fed Chairman Jerome Powell is due to announce the second policy decision of the year on Wednesday by the rate-setting Federal Open Market Committee. The benchmark interest rates is now in a range of 2.25 to 2.5 percent and futures markets see no more rate hikes in 2019. Her remarks marked a significant change: Six months earlier, Brainard — known as a “dove” who is less aggressive on raising rates — suggested the Fed would continue raising rates through 2019, not pausing to stop at “neutral,” the rates that neither stimulates nor slows the economy. “If the economy keeps going at two percent, that would still justify another rate hike at some point.” AFPAFP/CC

Source: Manila Times March 17, 2019 05:03 UTC