The US Federal Reserve has confirmed its key interest rate as expected by experts. The target range for the Fed Funds Rate rate remains between 2.25 and 2.50 percent, the Fed said today in Washington.
Last year, the US Federal Reserve raised interest rates four times. The last increase in December was the ninth increase since the end of 2015. Recently, however, there was a turnaround in interest rates in the USA. In view of the economic slowdown, the financial markets are speculating on interest rate cuts later in the year.
Eight Fed members are still anticipating falling interest rates this year, and nine of the 17 Fed members expect interest rates to decline by the end of 2020. At the same time, the Fed has specified its expectation of economic growth. Whereas 1.9 to 2.2 percent of the economic plus had previously been announced, the central bankers now expect between two and 2.2 percent. For 2020, the bandwidth has been increased from 1.8 to 2 percent to 1.8 to 2.2 percent.
