Federal Reserve spurs rates by quarter point

Federal Reserve spurs rates by quarter point

On Wednesday, the primary US financial institution had interest rates ramped up by a quarter point, although pivoted towards a more gradual rate-lift cycle due to the fact the American economy is anticipated to speed down.

The US major bank had the fed funds rate lifted 25 basis points. Now it’s within a band 2.25%-2.5%.

The Fed verdict, while anticipated, wasn’t appreciated by the stock market that had been soaring steeply into the decision, probably betting that a last-minute update of the monetary policy was on the cards.

The major US bank stressed that it’s assured that some further gradual hikes in the target band for the federal funds rate is about to be in line with ongoing expansion of economic activity, sound labor market conditions, to say nothing of the Fed’s 2% goal over the medium term.

Members of the rate-setting committee had their 2019 median estimate for interest rates reduced from a previous estimate of 3.1% to 2.9%, hinting at two rate lifts next year. It appears to be below the three rate lifts specified in the Fed's September projections earlier.

By the way, as for the interest-rate outlook for both 2020 and 2021, it was diminished from 3.4% to 3.1%, hinting at one rate lift that year.

As for the longer run interest rate, it was also reduced from 3% to 2.8%.

The American economy is anticipated to surge by approximately 2.3% next year, down from the previous outcome of 2.5%, and also by 2% in 2020.

Meanwhile, the tempo of inflation is predicted to speed down to 2%, diving from the previous reading of 2.1%.

The fresh outcome of the core PCE index accounted for 1.8%, which is a bit below the Fed’s 2% objective.

As for the unemployment rate, it’s anticipated to amount to 3.5% next year.


Key Forex Event: US Inflation Rate
Key Forex Event: US Inflation Rate

The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.

Latest news

Will USD Stop Falling Today? Market Wrap
Will USD Stop Falling Today? Market Wrap

The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong. 

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera