Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Friday, 16 November 02:47 (GMT -05:00)



Business And Politics News

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict


According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

 

 

 

 

 

In particular, the experts assume that the American economy is nearing 2018 with fairly strong stats. This economic strengthening is expected to push earnings and inflation higher. Naturally, the Fed is likely going to respond with tougher money-and-credit policies, including interest rate hikes. The U.S. unemployment rate is expected to shrink down to 3,7% and 3,5% by the end of 2018 and 2019 respectively. If that’s the case, this will be the lowest unemployment rate in more than 50 years. By the way, the current unemployment rate is at 4,1%.
 
 
Still, some experts believe Goldman Sachs’ forecast is way too optimistic. They appeal to macroeconomic stats when reasoning their standpoint. In particular, they say that the figures only seem really strong while the real state of affairs is not that clear.
 
For example, let’s take a look at the U.S. labor market. American businesses created 261K new jobs in October, but 89K of them belong to waiters and bartenders. Hourly earnings almost stopped growing – only 2,4% in 12 months.
For those of you who don't know, the Fed went back to raising interest rates in December 2015. They have raised the rates 4 times since then. Yet, another interest rate hike is expected in December. In 2012, the Fed introduced several goals – stable employment and inflation at 2%. Formally, this matches Goldman Sachs’ forecast for 2018 (1,8%).
 
Also, don’t forget about the staffing changes in the Federal Reserve. This is the moment when the Fed will probably have to revise their strategies and policies.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

The world is on the verge of another global race

International experts are commenting on the events taking place over the last few years. In particular, President and CEO of Atlantic Council Frederik Kempe believes that we are nearing another race between the world's biggest superpowers.
Publication date: 07 November 09:02 AM

Trump Wants More Control Over the Fed Since It's Too Independent

Donald Trump seems to have confirmed his authoritarian style of governing the state. If he has his way, he would probably turn himself into a king instead of a president. What are the reasons to think this way about the American president?

Publication date: 31 October 11:46 AM

Google Introduces Home Hub for $149

Google Corporation has released a couple of new devices, including several smartphone and a display named Home Hub. For those of you who don't know, Home Hub was introduced a couple of days after Facebook launched its first gadget - a smart screen. This device is designed to consume audio and video content from certain resources. It support voice control and is adjusted to the user's location. So, what is so special about Google Home Hub?

Publication date: 31 October 10:16 AM

New Sanctions May Drop Russian GDP

International experts are convinced that the near-term prospects of the Russian economy depend heavily on whether the USA expand the anti-Russian sanctions. They say the worst-case scenario is a 2.5% GDP drop.
Publication date: 29 October 11:14 AM

Russian Stocks Go Down Along With American Indexes

 Not so long ago, Russian stocks started going down in value. International experts say that this downtrend was mostly caused by external reasons. In particular, Russia's bigest stock index showed the biggest bearish move since April 2018. Back then, the Russian stock market used to be rather volatile because of the anti-Russian sanctions imposed on Russia by the United States.


Publication date: 28 October 11:49 AM

Crude Oil Prices May Reach $100/b

Ever since the United States imposed new sanctions on Iran, other oil exporters have been trying to make up for the decline in the international oil supply. Some experts are now predicting a strong trend all the way up to $100 per barrel. 

Publication date: 25 September 11:51 AM

New Anti-Russian Sanctions Will Slow Russian Economy Down, Kudrin Says

The new package of anti-Russian sanctions is expected ot be imposed by the United States in November. Apparently, this is not expected to become a disaster ofr the Russian economy, but it still may slow down the economic growth in Russia as well as the the flow of foreign investments to the country. This is what ex-Finance Minister of Russia Alexey Kudrin thinks on the matter.

Publication date: 19 September 12:10 PM

Cryptomarket Quickly Recovered From the SEC's Decision

The global market of cryptocurrencies quickly recovered from the downtrend after the SEC decided to ban the creation of Bitcoin ETFs.

Publication date: 24 August 10:00 AM

Ulysse Nardin Watch in Elite Lombard: Quality Dictated by Time

Elite Lombard has been operating in Moscow since 2003. It was founded by a team of experts with many years of expertise in the industry.

Publication date: 21 August 07:47 AM

Trump is Isolating the USA from the Rest of the World

Fareed Zakaria has commented on the content of today's external policy of the United States. He claims that President Trump's ambiguous decisions have been pushing the United States away form the rest of the world.

Publication date: 13 August 11:38 AM