Latest Global Business News

Fed hikes rates, points to 2 more increases by end of 2018

 
The Federal Reserve has hiked U.S. rates yet again,... by its usual 25 basis points.
 
The increase is the seventh since 2015,.... and second this year alone,... with more in the pipeline in the coming months.
This comes as the new chair of the Fed said the U.S. economy is finally picking up a head of steam.... after several years in the doldrums.
 
Kim Hyesung reports.
 
The U.S. Federal Reserve has raised its benchmark interest rate for the second time this year by a quarter percentage point to a range of 1-point-75 percent to 2 percent.
 
It's the seventh hike since 2015.
And a majority of policymakers say they now expect a total of four interest rate increases this year, after they had been split about whether to raise rates three or four times.
 
The Fed also dropped its pledge to keep rates low enough to stimulate the economy "for some time", reflecting a U.S. economy that's getting stronger.
 
"Economic growth appears to have picked up in the current quarter, largely reflecting a bounce back in household spending. Business investment continues to grow strongly and the overall outlook for growth remains favorable. Fiscal policy is boosting the economy. Ongoing job gains are raising incomes and confidence."
 
us hikes interest rates
 
Quarterly economic projections released at the meeting show Fed officials expect the economy to grow two-point-eight percent this year, up zero-point-one percent from its forecast in March.
 
U.S. unemployment fell to three-point-eight percent in May, the lowest since 2000, signaling the Fed is at or near its maximum employment goal.
 
Inflation is also snapping into line, with fresh projections Wednesday indicating it would run above the Fed's two percent target, hitting two-point-one percent this year and remaining there through 2020.
 
While the course of U.S. rate hikes remains gradual, the upbeat economic projections and slightly tighter pace of monetary easing is raising concern among emerging economies.
 
In recent months, emerging economies have been seeing capital outflows and their currencies weaken against the stronger greenback....contributing to currency crises in countries such as Argentina, Turkey and Brazil.
Officials at the European Central Bank are set to meet on Thursday to discuss for the first time when to end their bond-purchasing program.
 
The Fed's decision is also putting more pressure on South Korea to raise rates, with the U.S.-Korea rate gap now at zero-point-five percent.

Add comment

Emails are optional and for tracking replies. Names are unique; get yours today with a comment!


Security code
Refresh

La Business

Seoul taxi driver attempts self-immolation in protest against Kakao's carpooling service
Seoul taxi driver attempts self-immolation in protest against Kakao's carpooling service

  A taxi burst into flames in central Seoul on Wednesday evening,... after the d [ ... ]

Read more la
World Bank’s Jim Yong Kim to join private equity firm after shock resignation
World Bank’s Jim Yong Kim to join private equity firm after shock resignation

  The president of the World Bank, Jim Yong Kim, will join a private equit [ ... ]

Read more la
280kg Bluefin tuna nets US$3.1 million at Tokyo auction
280kg Bluefin tuna nets US$3.1 million at Tokyo auction

  Bluefin tunas are known to be expensive, but a New Year's auction in Tokyo o [ ... ]

Read more la
Global stocks plunge after "Apple shock"
Global stocks plunge after

  Let's start with the carnage on financial markets around the world.   M [ ... ]

Read more la
Trump-Xi phone call aims to break trade war
Trump-Xi phone call aims to break trade war

  U.S. President Donald Trump has held phone talks with his Chinese counte [ ... ]

Read more la
Asian stocks retreat on major sell-off on Wall Street
Asian stocks retreat on major sell-off on Wall Street

  Asian stocks retreated today.   Some of them were already dealt a [ ... ]

Read more la
Global stock markets swimming in sea of red
Global stock markets swimming in sea of red

  U.S. stocks fell sharply again on Thursday... on the threat of a partial gov [ ... ]

Read more la
Fed defies Trump; raises interest rates
Fed defies Trump; raises interest rates

  Our top story this morning... The U.S. Federal Reserve has defied continued [ ... ]

Read more la
China demands release of Huawei CFO Meng Wanzhou
China demands release of Huawei CFO Meng Wanzhou

  China is demanding the release of Huawei's chief financial officer who has been  [ ... ]

Read more la
Mobile bank Monzo raises £18 mil in three hours
Mobile bank Monzo raises £18 mil in three hours

  Mobile-only bank Monzo has hit its crowdfunding target after raising £18 mill [ ... ]

Read more la
French Queen Marie Antoinette pearl sold for record price at auction
French Queen Marie Antoinette pearl sold for record price at auction

  A pearl once belonging to 18th Century French Queen Marie Antoinette has sold for  [ ... ]

Read more la
Chinese shoppers spend 31bil on Singles' Day
Chinese shoppers spend 31bil on Singles' Day

  We all love a good bargain, but nothing simply comes close to the massive purcha [ ... ]

Read more la
Google employees go on strike
Google employees go on strike

  In New York,... more than three thousand Google employees protested in a city  [ ... ]

Read more la
World falling into recession 2018?
World falling into recession 2018?

  "Uncertainty" is a word we've been hearing more and more on the news these days. [ ... ]

Read more la
Stocks on Wall Street suffer worst day in eight months on Wednesday
Stocks on Wall Street suffer worst day in eight months on Wednesday

  Carnage on the markets.
U.S. stocks posted their worst single-day drop in mont [ ... ]

Read more la
US Federal Reserve raises interest rates by 0.25%
US Federal Reserve raises interest rates by 0.25%

  In a highly-anticipated move,... the U.S. Federal Reserve has hiked interest [ ... ]

Read more la

Our Sponsors


La Latest

Horses gallop through bonfires at Luminarias Festival 2019

  Horses gallop through bonfires at the annual Luminarias festival which takes [ ... ]

Read more la
Robot replicates steps of 290-million-year-old creature

  Scientists present a walking, robotic replica of a 290-million-year-old Or [ ... ]

Read more la
Netflix raises monthly subscription prices in US

  Media streaming service Netflix announced on Tuesday that it will rais [ ... ]

Read more la
Theresa May's Brexit deal defeated in Parliament

  Theresa May's Brexit deal has been overwhelmingly defeated in Parliament. MPs reje [ ... ]

Read more la
Row in Rome over how to spend Trevi Fountain coins

  An unholy row has erupted in Rome between the city council and the Catholi [ ... ]

Read more la
World's longest aircraft 'Airlander 10' to go into production

  The world's largest aircraft is set to go into full production. It's  [ ... ]

Read more la
Thousands celebrate crowning of European Capital of Culture

  Around 50,000 people gathered in Plovdiv in Bulgaria to celebrate the ci [ ... ]

Read more la
Orphaned orangutans learn forest skills at rehab centre

  Critically endangered orphaned orangutans are learning vital forest skil [ ... ]

Read more la

La Entertain

Baby Shark debuts on Billboard Hot 100

  BTS isn't alone in making a big splash in the global music realm.    [ ... ]

Read more la
BTS dolls to hit market this summer

  BTS made a big splash in the global music scene in 2018, breaking record [ ... ]

Read more la
Black Pink, Hyukoh, Jambinai performs at Coachella 2019; makes K-pop history

  Several Korean music acts are in line to perform at the annual Coachel [ ... ]

Read more la
Tiffany Tang Yan & Luo Jin's Vienna Wedding; welcomes 2019

After being noticed by the paparazzi on 1,000 occasions sharing a hotel room and playing chest chess [ ... ]

Read more la
Angelababy sings out of tune to welcome 2019

On 30 Dec 2018 night, Angelababy (29) was performing on Zhejiang TV's new year celebrations to welco [ ... ]

Read more la
Cecilia Cheung's 3rd son fathered by Kopitiam King from Singapore? New husband, boyfriend?

On 17 Dec 2018, Cecilia Cheung confirms that her new-born third son is one month old, without sharin [ ... ]

Read more la
Zhao Wei denies escaping China with Singapore passport

Vicki Zhao Wei (42) and her businessman husband Huang Youlong (42) are rumoured to be worth S$1.16 b [ ... ]

Read more la
Andy Lau cries & cancels concert abruptly after 3 songs

On 28 Dec night of 2018, heavenly king Andy Lau (57) was braving the winter cold with a sore throat  [ ... ]

Read more la