The minutes from the Fed’s: the fiscal stimulus could accelerate the close – The Sun 24 Hours

NEW YORK – The Federal Reserve is convinced that the prospect of economic stimulus from the government and from the fiscal front could accelerate the growth of the american. Also, if it considers that there is still “considerable uncertainty” about the impact that the administration Trump will really have on the expansion.The judgment of the encouraging of the central Bank of the United States, on the eve of the settlement of Trump on 20 January, has helped the Dow Jones index to break through the quota of 20,000, going up about 50 points from the historical peak psychological. A judgment contained in the minutes of its last meeting on 13 and 14 December, when he decided to proce ed with the first rise in interest rates from a year, a quarter of a point, bringing the cost of money to to to to 0.50-0.75 per cent.

Piazza Affari held on the final with the banks in light. Wall Street positive

On that occasion, Janet Yellen and colleagues in the Fomc had already left to guess to catch a glimpse of the strengthening of growth, assuming that the three narrow in 2017 rather than the two imagine previously. Almost in unison, leaked now, the Fed has indicated that the assumption of infrastructure costs, tax cuts and deregulation – the three campaign promises central to the program, Trump could support expansion and inflation in the years to come. Give the way, that is, a change of paradigm: “Half of the participants, we read in the minutes – has built-in predictions of a fiscal policy more expansionary. And almost all of them have indicated that they are increased risks of a higher growth when compared to the estimates”.

The warning of penalty is that, however, it appears “too early to know what policy changes will be made and how this might alter the outlook.” So as to require, according to many exponents, the attitude to time in the collection “cautious”. Similar questions threaten to make more complex the challenge for the Fed to clearly communicate the “probable direction” of monetary policy to the markets.

The u.s. exchange did not, however, suffered yesterday of confusion, encouraged by the enhanced prospects of the economy, has continued the long march towards the summit the psychology of 20,000 points. Has not reached, but just a little: the Dow Jones has gained 0.32% to reach around 19.944 points. Rose moved to the Nasdaq, 0.8%, and the Standard & Poor’s 500, 0.5 percent. Highlighting the sectors of raw materials and of consumption, capable of soaring of 1 percent. The dollar has lost a little ground, the highest in 14 years, slipping 0.6% on the euro at the altitude of 1,046.

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