The US Federal Reserve raised interest rates for the second time in 2018 by 25 basis points to 2.00%, with reference to the possibility of raising interest rates again this year. The bank said the US economy is growing at a strong pace, with household spending improving and unemployment falling.
This is the sixth increase since the bank began to tighten monetary tightening in December 2015. The dollar rose strongly following the decision before it started to recede again with the negative tone dominating Powel's remarks at the press conference. He said that Inflation reached the target does not mean the need to rush to raise interest rates and that economic data will determine the course of interest.
On the other hand, the European Central Bank kept its current monetary policy unchanged. The interest rate was kept at zero levels and the interest on the deposit was 0.40%, while the volume of the QE program continued at 30 billion euro per month until the end of December. The euro fell immediately after the decision against most major currencies, especially against the euro to reach levels of 1.1720.
