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ddd -rd/ ----d: After concluding the two-day Federal Open Market Committee interest rate meeting, the Federal Reserve announced at 1:00 pm ET on Thursday that it would keep its key interest rate unchanged at -.%. The statement said that the recent global economic and financial situation may restrict economic activities to a certain extent and may cause further downward pressure on short-term inflation rates. Economic and job market risks remain close to balance, but the evolution of overseas situations will be closely monitored.
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ddd -rd/ ----d Subsequently, Federal Reserve Chairman Yellen held a press conference at: Given that her remarks will provide important clues to the Fed's subsequent interest rate hikes, what did she say at the meeting? The following is an outline of Yellen’s speech.
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ddd -rd/ ----dFederal Reserve Chairman Yellen’s monthly press conference:
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ddd -rd/ ----d Employment growth has continued to be solid since the monthly policy meeting. Inflation has been below target and recent developments in the global situation may put downward pressure on inflation. The committee's view on the economic outlook remained unchanged. It would be appropriate to start raising interest rates when we see further improvement in the job market and a pickup in inflation. The economic growth rate in the first half of the year was significantly stronger than the monthly estimate. Net exports significantly dragged down the growth in the first half of the year due to the appreciation of the US dollar. After the first interest rate hike, the stance of monetary policy will remain highly accommodative for a period of time.
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ddd -rd/ ----d Continued employment growth supported household spending. Fixed investment increased slightly. The U.S. economy is still expected to grow moderately.
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ddd -rd/ ----dBroader career indicators continue to improve The labor market may still have some cyclical weakness Involuntary ship employment numbers Still more wage gains remain subdued. Inflation is likely to remain quite low in the coming months.
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ddd -rd/ ----d In response to the foreign situation, Yellen said that the foreign prospects look more uncertain. There has been significant volatility in financial markets and financial conditions have tightened to a certain extent, which will limit U.S. growth. It is necessary to pay close attention to the situation abroad. On the collapse of oil prices and the strengthening dollar, Yellen said that the recent further decline in oil prices and the appreciation of the dollar mean that these factors will take longer to subside.
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ddd -rd/ ----d Yellen said there are reasons to support raising interest rates now. It is considered appropriate to wait for more evidence before raising interest rates. The development of the situation has not fundamentally changed the outlook. The U.S. economy is performing well and is expected to continue growing. Our decision does not depend on specific data. The timing of the first rate hike is less important than the path of the rate hike. Most Fed officials still expect to raise interest rates for the first time this year. Century policy actions depend on how the economy develops. How the economy will develop is quite uncertain. The path of interest rates could be steeper or flatter than expected. The United States needs to pay close attention to the situation given its close ties with other countries.
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ddd -rd/ ----d recognizes that the market is focused on the Federal Reserve's decision today. Actual action depends on how the economy develops. Expectations show most Fed officials believe they will raise interest rates for the first time this year. We cannot expect the uncertainty to be fully resolved. The outlook for inflation has softened slightly.
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ddd -rd/ ----d: In addition, Yellen emphasized that the Fed wants more time to evaluate the economic situation. An improving labor market will help inflation confidence. Each meeting has the potential to take action which certainly includes the monthly meeting. There are currently reasons to raise interest rates and we have discussed raising interest rates. Given overseas uncertainty and weakening inflation we decided to wait. An improving labor market will help inflation confidence. We want to feel like the U.S. economy is doing well.