The leadership of the Federal reserve system of the USA following the meeting, raised the benchmark interest rate to 1-1. 2 percent. This is stated in the press release of the regulator.
Base rate – the interest rate at which banks lend to each other unsecured loans for one day. The fed rate affects everyone. Its increase leads to the withdrawal of investors in US assets, which means a stronger dollar and lower commodity prices.
The statement noted the moderate growth of the US economy, the assessment of inflation (the PCE index) in 2017, reduced from 1.9 percent to 1.6 percent.
However, the fed still expects still another, the third rate increase in 2017.
The statement also says that in determining the rate of adjustment of the range of base rates further, the fed will focus on indicators of the labour market, inflationary pressures and inflation expectations, and take into account international developments.
The fed began to raise rates from 14 December 2015, raising the rate by 0.25 percentage points in a year, in December 2015, the fed again raised the rate by 0.25 percentage points Following an increase of 0.25 percentage points was in March 2017.