Pressure eases on Federal Reserve to continue rate hikes
Posted By RichC on May 1, 2017
The rate of U.S. inflation for March was slower than expected just one month after hitting a five-year peak. The number reflects lower gasoline and consumer goods prices, including automobiles. Thiis could ease pressure on the Federal Reserve to raise interest rates, even though central banks have telegraphed increases this year. The U.S. economy is still growing steadily, the stock market is at a record high, unemployment is 4.5% which is low and wages are on the rise along with a growing shortage of skilled workers. All in all, the economy is set for growth especially if the two big legislative items get done this year: 1) reforming Obamacare and 2) tax reform — especially lowering corporate tax rates and the repatriation of billions of overseas dollars.
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