Baku. 17 March. REPORT.AZ/ Fed kept the federal funds target rate unchanged at 0.25%- 0.50% last night. Report informs, although at the December meeting, Fed officials had planned to raise its key interest rate four times in 2016, they now expect only two increases.
The forecast in terms of the key rate reduced from 1.4% to 0.9% in 2016, in 2017 - from 2.4% to 1.9%, in 2018 - from 3.3% to 3%.
In her speech, the Fed chief Janet Yellen expressed the hope that the indicators of inflation will rise.According to her, the Fed expects to achieve the inflation target of 2% in the next 2-3 years.
J.Yellen noted that one of the main reasons for saving the key rate was slow economic growth against expectations.The Fed will continue to make decisions based on economic indicators.
Analytical Group Report believes that in case of stable development of the global economy and the positive dynamics of the US economy the Fed may raise its key rate in April.By the next meeting on April 26-27 it is projected to rise stock exchanges by 5%, oil prices - up to 50 USD / barrel, gold prices - 1 150 USD/ounce. At the same time, there is potential for increasing the key rate at a meeting on June 14-15.In both cases, significant adverse changes in the global financial markets not expected.
In the summer months, there is a tendency to a decline in global financial markets and the increase in the price of gold. This process will continue until October and November.However, by the end of the year financial markets will stabilize", analysts said.