Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Sunday, 15 September 14:39 (GMT -05:00)



Business And Politics News

Fed Doesn’t Deny Interest Rate Hikes Later This Year


Not so long ago, the Fed’s representatives announced that they had improved their expectations regarding the U.S. economic growth prospects in 2015.
 

 

 

 

Previously, it used to be expected that the American economy is likely to gain 1,9% at most in 2015. However, the revised forecast says that the world’s biggest economy is probably going to gain 2% this year. However, the Fed’s economic predictions for 2016 and 2017 now seem to have been downgraded.
 
Still, based on the mentioned information as well as the charts provided by the Fed, we may well expect the Fed to consider raising the ultra-low interest rates for the first time in many years later this year. If this happens, this is going to be a one-time raise this year. However, the series may well be continued next year. The highest rate hike expected is 0,4% even despite the fact that this summer there were expectations that the Fed may well raise the rates by 0,65 at a time.
 
At the same time, as far as longer-term prospects are concerned, the Fed expects the U.S. GDP to grew by 2% on average while the overall forecast is down to 1,8-2,2%. In summer, the figures used to be at 2 - 2,3%.
 
Meanwhile, the Fed expects the U.S. rate of unemployment to fall from 5,1% down to 5% against the previous forecast of 5,3% this year. Over the next 2 years, the rate of unemployment is expected to drop below 5% down to 4,8%. If this is the case, this is going to be below the long-term prediction of 5%.
 
As far as inflation is concerned, together with consumer spending, it is expected to drop from 0,7% down to 0,4%. Over the next 2 year, it is going to drop from 1,8 to 1,7% and from 2% down to 1,9% in 2016 and 2017 respectively.
 
At the same time, 13 of 17 FOM members assume that 2015 is still the best year for the first interest rate hike. For those who don’t remember, the last time the Fed raised the interest rates was 2006. 3 members assume that it is necessary to wait for 2016 before raising the rates and only one members is convinced that there should be a 2-year delay.
 
The latest FOMC meeting resulted in the decision to leave the interest rates unhanged at 0,25%. As you probably know, the key interest rate has been that low over the last 6 years since the latest financial crisis. With that said, the likelihood of the first interest rate hike until the ned of 2015 is still pretty high.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Fed Cuts Key Interest Rate For The First Time In 10 Years

The U.S. Federal Reserve is reported to have cut the key interest rate, which is something really outstanding since the Fed has done it for the first time since 2009.

Publication date: 11 August 03:05 AM

New Prime Minister Names Brexit Date

It seem that the new Prime Minister of the United Kingdom is really determined about everything related to the Brexit. The process is expected to start in later 2019. Boris Johnson's standpoint on the matter didn't come as a surprise to the international expert community, Market Leader reports. The thing is, he has been well-known for being an advocate ad big supporter of quitting the European Union in general, and doing so without a major agreement in particular, which is also known as the hard Brexit scenario. 

Publication date: 07 August 06:54 AM

Johnson Launches Hard Brexit Ad Campaign

Boris Johnson, who has recently been appointed new UK Prime Minister, is on his way to launch an ad campaign to promote the idea of quitting the EU the hard way, which is also known as the hard Brexit. For those of you who don't know, the hard Brexit scenario implies quitting the European Union without signing a major agreement.

Publication date: 31 July 11:43 AM

U.S-China Trade War Is Sponsored By Consumers

According to the IMF, consumers and producers are the biggest losers in the trade war between the United States and China. Despite growing duties, American companies are not in a hurry to move their production back to the USA.

Publication date: 12 July 01:19 AM

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM