U.S. Federal Reserve Raises Interest Rates, Predicts Stronger Economic Growth

Interest rate goes to 2.25%.

With the U.S. economy continuing to surge, the U.S. Federal Open Market Committee has increased the benchmark interest rate from 2% to 2.25%.

In addition to the interest rate hike, the federal reserve upped their prediction for U.S. economic growth.

While they had earlier predicted growth of 2.8% for 2018, that has been revised to 3.1%.

They also raised the prediction for growth in 2019 from 2.4% to 2.5%.

Longer-term, U.S. growth is expected to be 2% in 2020, and 1.8% in 2021.

According to CNBC, “The committee still indicated another rate hike before the end of 2018 and likely three more in 2019. There’s one more increase factored in for 2020, bringing the median range to 3.4 percent where it is expected to stay through 2021 before settling to 3 percent over the longer run, an increase from June’s projection of 2.9 percent.”

Spencer Fernando

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Gonzo the Magnificent

As I do believe The Donald is doing a great a job as any one can in MAGA, let me disclose to the readers that he is running record deficits. The last I saw of the US federal debt was it is running around 21.4 trillion USD. Add insult to injury, is the fact that this economy like all the rest of the world and the financial markets, have been running off of cheap money. This seems to be disappearing as the Fed just announced the above. Leading indicators like autos and housing are starting to slip YOY. These rate… Read more »