US Federal Reserve raises interest rates as expected

The US Federal Reserve has raised interest rates as expected by experts. It cut interest rates to between 1.25 and 1.50. Three interest rate hikes for 2018 were anticipated. Fed lowered the unemployment expectation and raised growth forecast, signaling that the US economy is on track.

The interest rate increase decision was taken by 7 votes against 2 votes. Dollars / TL rate continued to stay at 3.82 levels without changing the pre-decision stance. The Fed stressed that it expected stronger growth for the US economy in the coming period.

According to the Fed’s ‘Economic Projection’ report, the growth forecast for 2017 rose to 2.5 percent from 2.4 percent. The Bank raised its forecast for growth for the next year from 2.1 percent to 2.5 percent.

The Bank’s expectation for unemployment rate for this year was projected at 4.1 percent from 4.3 percent and the 2018 and 2019 expectation from 4.1 percent to 3.9 percent. The Bank revised its unemployment rate estimate from 4,2 percent for 2020 to 4 percent and maintained its long-term forecast at 4.6 percent.

The Bank’s PCE inflation expectation was revised from 1.6 percent to 1.7 percent for this year , The forecast for 2018 was 1.9, 2019, 2020 and the long-term estimate was 2.0 percent.