The Federal Open Market Committee (FOMC) votes 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5%.
On December 16, 2008, the interest rate was set at 0-0.25%, the record level, and remained unchanged for 7 years. In December 2015, FED raised the rates up to 0.25-0.5% on the background of the lowest rate of the unemployment level (5%) since February 2008.
In 2018, FED raised interest rates four times: March 21 – 1.5-1.75%, June 13 – 1.75-2%, September 26 – 2-2.25% and December 19 – 2.25-2.5%.
Despite the FED’s updated forecast on main macroeconomic indices intends to keep the GDP dynamics and unemployment level, the inflation will be 1.5%, not 1.8%, at the end of the year.
Report’s analytical group thinks that FED made a decision as was expected and hinted at doing what was expected in the near future. This creates a basis for reduction in interest rates at the July meeting.
After the two-day meeting of the FED, US stocks went up. In the morning on Tuesday, dollar rate against other main currencies fell. Gold price rose by $38 to $1,368.80 an ounce, while silver price soared $0.40 to 15.36 an ounce.
Today, the Brent crude was sold at $62.68 a barrel, up $0.86% or 1.39% from yesterday. WTI crude price surged $0.68 or 1.26% to $54.44 a barrel.