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Business And Politics News

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict


According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

 

 

 

 

 

In particular, the experts assume that the American economy is nearing 2018 with fairly strong stats. This economic strengthening is expected to push earnings and inflation higher. Naturally, the Fed is likely going to respond with tougher money-and-credit policies, including interest rate hikes. The U.S. unemployment rate is expected to shrink down to 3,7% and 3,5% by the end of 2018 and 2019 respectively. If that’s the case, this will be the lowest unemployment rate in more than 50 years. By the way, the current unemployment rate is at 4,1%.
 
 
Still, some experts believe Goldman Sachs’ forecast is way too optimistic. They appeal to macroeconomic stats when reasoning their standpoint. In particular, they say that the figures only seem really strong while the real state of affairs is not that clear.
 
For example, let’s take a look at the U.S. labor market. American businesses created 261K new jobs in October, but 89K of them belong to waiters and bartenders. Hourly earnings almost stopped growing – only 2,4% in 12 months.
For those of you who don't know, the Fed went back to raising interest rates in December 2015. They have raised the rates 4 times since then. Yet, another interest rate hike is expected in December. In 2012, the Fed introduced several goals – stable employment and inflation at 2%. Formally, this matches Goldman Sachs’ forecast for 2018 (1,8%).
 
Also, don’t forget about the staffing changes in the Federal Reserve. This is the moment when the Fed will probably have to revise their strategies and policies.

 

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Fitch Downgrades Economic Forecast for Russian Economy

An international rating agency named Fitch has downgraded the economic forecast for the Russian Federation. In particular, the experts working for the international agency assume that the Russian economy will grow by 1,8% this year. The previous forecast used to be 2% in 2018. The economic forecast for the next year has dropped from 2% down to 1,9%. In 2020, the Russian economy is believed to gain only 1,5%. The long term forecast is also bearish – 1,2% a year on average.

Publication date: 28 June 12:51 PM

When it comes to trade, EU is worse than China, Trump says

Not so long ago, President Trump said that the European Union is worse than China, when it comes to trade relations. This is reported by Axios with reference t anonymous sources. They say this comparison was made during President Trump’s conversation with French President Emmanuel Marcon back in April 2018. Back then, the 2 leaders were discussing the Chinese issue. Macron urged Trump to unite forces with Europe to resist China since China is a trade problem for everyone. 
 
Publication date: 27 June 11:07 AM

Trump Turned G7 Into G6+1

The British media are criticizing Donald Trump's stance and behavior during the recent G7 summit in Quebec, Canada. 

Publication date: 13 June 12:02 PM

G7 Is Ready to Impose New Sanctions on Russia

In the final communique of the recent G7 summit in Quebec, Canada, there is warning for Russia. In particular the G7 warns Moscow that they are ready to impose even more sanctions on Russia in case of further aggression. 

Publication date: 12 June 11:44 AM

George Soros: New Global Crisis Is Coming

While analyzing the current geopolitical situation in the global arena, many experts warn us about serious threats. For example, famous billionaire and financier George Soros predicts another global crisis in the near future. Even though his predictions are controversial at best, many representatives of the international community take his words for granted.

Publication date: 01 June 12:24 PM

Donald Trump Is Not going to Meet with Kim Jong Un

U.S. President Donald Trump is reported to have been canceled his meeting with North Korean leader Kim Jong Un. This is confirmed by the corresponding official press release published in the White House’s official account.

Publication date: 24 May 11:49 AM

How to become a European bank co-owner?

Do you want to get absolutely legitimate access to the EU’s banking system by becoming a co-owner of a European bank to have personal and corporate accounts in your own financial institution? It’s like having a VIP card by VISA or MasterCard with huge discounts worldwide…

Publication date: 10 April 08:06 AM

Goldman Sachs Analysts Have Found Global Economic Slowdown

At the point, most representatives of the international expert community are pretty sure that the global economy has been growing confidently for some time. However, Goldman Sachs analysts claim that the global economy is starting to slow down.

 

In February 2018, 7 out of 10 base components of Goldman Sachs' Global Leading Indicator (GLI) dropped a bit. The bullish momentum started weakening and slowed down from 0,249% down to 0,234%. These are the weakest figures since March 2016.

Publication date: 30 March 01:25 AM

U.S. Fed Denies 4 Interest Rate Hikes This Year?

According to Finanz, the accelerated economic growth in the United States may force the federal Reserve to change their mind about raising interest rates 4 times this year.
 
Publication date: 29 March 11:19 AM

Putin Challenges USA

Vladimir Putin has recently presented new Russian weapons. Western experts have been busy discussing them ever since. According to several observers, this move literally means that Putin has challenged Washington.

Publication date: 29 March 10:06 AM