It is expected that the fed will evaluate the impact of tax reform on the economy
The US Federal reserve is expected Wednesday to raise interest rates, and will assess how the planned administration of the trump tax reform may affect the country’s economy.
Investors are closely watching how the fed seeks to strike a balance between economic growth thanks to the stimulus, is still weak inflation and faltering wage growth, which partly reduced the interest rate hike.
Policy statement and latest economic projections, the fed needs to be published at 14.00 Eastern time, on the first full day of the meeting. As expected, half an hour later the head of the fed Janet Yellen will hold a press conference – the last before the end of the four years of her term, which expires early next year.
Her successor, a member of the Board of governors Jerome Powell, at a recent Senate hearing on his confirmation, said that “no feeling of overheating”. It is regarded as a sign that he doesn’t want to accelerate the process of raising rates until, until evidence of growth of wages and inflation.
In 2017, the fed raised rates twice, and the next three are expected to increase. During the work of Yellen as the head of the Agency determining there was a desire to maintain expansionary fiscal policies for as long as possible in the hope of further reducing unemployment and increasing wages.