Following its two-day rate-setting meeting in Washington, yesterday Jerome Powell, head of the US central bank, not only kept the Fed Funds target unchanged (2.25-2.50 per cent), as expected, but said it was probably going to stay there until year-end. This is a sooner than expected end to the process which began in 2015 aiming to get interest rates back up to more ‘normal’ levels. He added that the rate at which it would trim its holdings of Treasury paper would slow. Forecasts for this year’s economic growth, inflation and unemployment were trimmed.
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