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Federal Reserve meets ahead of expected interest rate rise

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Federal Reserve meets ahead of expected interest rate rise

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Global markets are watching closely as the US Federal Reserve meets on Tuesday and Wednesday, amid widespread speculation that it’s to raise its benchmark interest rate for the second time this year.

Many economists expect another quarter percent rise…. one said he thought the move was “set in stone”.

It’s also thought likely the Fed will give more detail on its plans to reduce the huge bond portfolio it amassed to nurse the recovery.

Chair Janet Yellen is due to hold a news conference later on Wednesday after the rates decision is announced.

The expected rise comes with US unemployment down to a 16-year low and growth appearing to have sped up.

But other economic indicators are more mixed.

There are also doubts over the sort of fiscal stimulus the Trump administration may inject into the US economy.