US Fed set to keep rates steady as officials defend independence
[hfe_template id='11223']
[ad_1]
The US Federal Reserve is widely expected to keep interest rates unchanged when it meets in the coming week, holding firm despite President Donald Trump's pressure to slash levels as it guards against threats to its independence. The central bank has cut rates three consecutive times since September as the jobs market weakened, bringing them to a range between 3.50 percent and 3.75 percent. But Fed Chair Jerome Powell has signaled the bar would be higher for a further reduction in January. They meet on Tuesday and Wednesday. "The fact that growth is strong, unemployment is low, equity markets are close to all-time highs and inflation is above target all argue for a pause," said analysts at ING bank. Powell's robust defense of Fed independence in response to ongoing pressure from Trump to lower rates confirms this, ING added. Live Events On January 11, Powell released a rare, solemn statement revealing that the Department...