Fomc Statement: Interest-Rate Hike and Consumer Expenditures

fomc statement: The announcement soon met with widespread disapproval, according to Global Times China. Critics noted that the US economic growth has slowed in the last quarter and that the Fed's preferred measure of inflation the rate of increase of the price of consumer expenditures had fallen below the official 2 percent target. This was the fourth increase in 12 months, a sequence that had been forecast a year ago, and the FOMC members also indicated that there would be two more quarter-point increases in 2019. Given that the Fed has long said that its interest-rate policy is data dependent, why did it press ahead with its previously announced plan to continue tightening monetary conditions The FOMC statement announcing the latest interest-rate hike gave no explicit reason for it. Determining the appropriate level of the interest rate depends on balancing a changing array of considerations. Fed Chair Jay Powell's remarks at his press conference also gave no reason for maintaining the originally planned rate increase despite the economic slowdown. (news.financializer.com). As reported in the news.