Fed Raises Interest Rate by a quarter point

Fed expected to raise rates today

Fed expected to raise rates today

The U.S. Federal Reserved raised its short-term interest rates on Wednesday by one quarter of one percent.

The administration's budget does expect the federal government's interest rate costs to rise, but that is due to the faster economic growth the program is expected to foster, Mulvaney said.

Ian Kernohan, senior economist at Royal London Asset Management, said: 'The Fed made little changes in the language or projections for further interest rate hikes.

Earlier on Wednesday, the Labor Department reported consumer prices unexpectedly fell in May, the second drop in three months. Thomson Reuters CRB index tumbled to 14-month lows, having fallen nearly 12 percent from this year's high hit in January.

In fact, the Fed has said in the past that if it reduces the balance sheet by $500 billion, it is the equivalent of two rate hikes, he pointed out.

The number of dissenting votes was taken as a sign by investors that the United Kingdom central bank is closer to ending the stimulus put in place after last year's Brexit referendum.

However recent United States rate hikes have belied fears of capital outflows from India, with foreign funds continuing to pump in huge liquidity into the stock market.

China Releases Three Activists Detained For Probing Ivanka Trump Supplier
In April, China Labor Watch sent a letter to Ivanka Trump asking her to work to improve conditions in her Chinese factories. China Labor Watch said now hoped that the trio will have the right to "a fair trial".

Chair Janet Yellen was asked at a news conference whether she anxious that the Fed could rattle markets once it starts shrinking its bond holdings.

The average 30-year fixed mortgage had a rate of 4.02% on Weds., June 14 - the lowest since November 16, 2016 - and an average of 0.24 discount and origination points.

"We have a very strong labor market, an unemployment rate that's declined to levels we have not seen since 2001 and even with some moderation in the pace of job growth, we have a labor market that continues to strengthen". Though the economy is growing only sluggishly and though inflation remains chronically below the Fed's 2 per cent target, it foresees improvement in both measures over time. The rest said the Fed would make such a move later by its December 12-13 meeting. The amount of securities the Fed held on its balance sheet ballooned from less than a trillion dollars before the crisis to roughly $4-and-a-half trillion.

At Bank for Investment and Development of Việt Nam (BIDV), exchange rates saw no change compared with Wednesday, being listed at VNĐ22,665 for buying rate and VNĐ22,735 for selling rate.

Fed officials expected the economy to grow 2.2 percent this year, compared to their forecast of 2.1 percent in March.

Kourtney Gibson, head of global equity and fixed income at Loop Capital, told CNBC she liked how Yellen took away the rhetoric surrounding inflation.

It seems the Fed is no longer data dependent as before and wants to carry on with the normalization process despite weakness seen in some economic releases. Yellen's term as chair ends in February 2018, and Trump has not said if he would ask her to stay on.

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