Business


US Federal Reserve raises interest rates by further 0.25%

The Fed has now increased its benchmark interest rate by a full percentage point since 2015 , a demonstration of confidence in the health of the USA economy, which has added an average of 190,000 jobs a month over the last two years. "I think they are going to skip it", said John Silvia, chief economist at Wells Fargo. Longer-term bonds typically pay higher rates, and as rates rise, the short-term securities will be replaced with higher-yielding ones.


House Majority Whip Steve Scalise critical, hospital says

House Majority Whip Steve Scalise critical, hospital says

We can all agree that we are blessed to be Americans, that our children deserve to grow up in a nation of safety and peace, and that we are strongest when we are unified and when we work together for the common good . He described the gun as a semi-automatic and that the gunman continued shooting at other people. The incident happened while Republican members were at a Congressional baseball practice near the YMCA.


US consumer prices slipped 0.1 percent in May

US consumer prices slipped 0.1 percent in May

More important, the rate of inflation over the past 12 months slowed to 1.9% in May from a five-year high of 2.7% just four months ago. The Food and nonalcoholic beverages group recorded a year-on-year inflation rate increased slightly to 6.7 per cent representing a 0.6 percentage point decrease from the 7.3% recorded in March 2017.


Fed raises rates, unveils cuts to bond holdings in sign of confidence

Fed raises rates, unveils cuts to bond holdings in sign of confidence

The U.S. central bank cited continued U.S. economic growth and job market strength, proceeding with its first tightening cycle in more than a decade. Inflation on a 12-month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term.


Consumer prices fell more than expected in May

Consumer prices fell more than expected in May

It was the second monthly decline in the past three months and underscores how inflation has been a no-show in the slow-growing USA economy. Howard Archer, chief economic adviser to the EY Item Club, said inflation "is likely to peak at around 3.2%-3.3% in the second half of the year as sterling's past slump is unlikely to have fully fed through yet".


Fed raises rates, sets out plan to shrink asset holdings

Fed raises rates, sets out plan to shrink asset holdings

The announcement that the Fed plans to begin paring its balance sheet later this year - "provided that the economy evolves broadly as anticipated" - involves its enormous portfolio of Treasury and mortgage bonds. Good news: 30-year mortgage rates are still very low at about 3.9%. For mortgage-backed securities and agency debt, the Fed set an initial cap of $4 billion.