The central bank foresees one additional rate hike this year, unchanged from its previous forecast. Photo: ReutersThe US Federal Reserve (US Fed) on Wednesday forged ahead with a 25 bps interest rate hike and additional plans to tighten monetary policy despite growing concerns over weak inflation. That change, and the reduction in the 2017 inflation forecast, could reduce the urgency policy makers feel to hike rates again in coming months, especially if inflation remains soft. “Job gains have moderated but have been solid, on average, since the beginning of the year, and the unemployment rate has declined,” the FOMC statement said. Economic growth projections were little changed, with the median forecast for 2017 moving to 2.2% from 2.1%The FOMC next meets in six weeks, on 25-26 July.

Source: Mint June 14, 2017 18:09 UTC