District of Columbia, DC, United States (NewsBahn) – The independent U.S. central bank raised borrowing rates Wednesday for the fourth time this year, dismissing President Donald Trump’s contention that policymakers ought not tinker with the country’s robust economy, the world’s largest.
The Federal Reserve board voted 10-0after a two-day meeting to increase its benchmark short-term interest rate — which is the rate that banks charge each other on overnight loans to meet reserve minimums — by a quarter percentage point to a range of 2.25 percent to 2.5 percent, its highest point in a decade.
But the Fed also took note of clouds on the horizon for the U.S. economy, saying it expected to increase rates again only twice in 2019, not three timesas it had previously projected.
It also cut its 2019 economic growth forecast for the U.S. from 2.5 percent to 2.3 percent, both figures well off the 4.2 percent U.S. growth in the April-to-June period and the 3.5 percent figure from July to September.
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