Fed Expected to Keep Rates Unchanged - ABI

The Fed is not expected to change interest rates, and Chair Jerome H. Powell is widely expected to stick to the same script he used in December that the U.S. economy is doing pretty well and interest rates are in a “good place," the Washington Post reported. Recession fears have faded, unemployment is at a 50-year low, inflation is tame and the stock market remains high. However, President Trump is threatening a trade war with Europe now that tensions have subsided with China. Inequality remains high. And no one knows how deadly the coronavirus outbreak will be for the United States — or anywhere else in the world. After the Fed’s expected statement at 2 p.m. EDT today about keeping interest rates the same (the current level is just below 1.75 percent), Powell is likely to say at a news conference that the central bank is monitoring these risks closely but the impact on the U.S. economy remains tiny. Almost all the signs indicate that American consumers remain upbeat and continue to spend. ABI

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