Fed Hold Rates Steady, Sees “Solid” Economic Gains

The Federal Reserve has announced that it will continue with gradual increases aimed at keeping the economy on track. It will hold short term interest rates steady until March. The goal is to keep rates low enough to shape up the current inflation situation. There are three rate increases to be expected in 2018, but the outlook for U.S economic growth is positive. The labor market and solid economic growth showing probability for a sustainable future. Unemployment reached a 17 year low in December and new tax cuts pave the way for more employment in the upcoming year. In a policy statement Wednesday, the Federal Reserve acknowledged the recent tax cuts and projected they will spur economic growth and near term economic risks are “roughly balanced”. The statement did not go into detail. The Federal Reserve will be swearing in a new chairman next week. Jerome Powell will replace Janet Yellen on Monday.

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