Fed leaves rates on hold
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.INFLATION IN America remains moderate, implying no rise in interest rates, according to data released yesterday.
US consumer price inflation rose slightly to 0.2 per cent in July, up from a 0.1 per cent increase in June. Core inflation - excluding volatile energy and food prices - rose at the same rate. Inflation is running at an annual rate of 1.5 per cent for the first seven months of the year, down slightly from 1.7 per cent for all of last year, with the core rate at 2.4 per cent compared to 2.2 per cent in 1997.
The Federal Reserve Open Market Committee met yesterday to examine US monetary policy, but left interest rates unchanged as they have been since March 1997. The US economy shows no signs of descending into an inflationary spiral, despite several years of strong growth. Expansion has moderated in the second quarter of this year, as the impact of slower growth and currency depreciation in Asia starts to hit the world economy.
The US trade deficit with the rest of the world has soared as exports have declined, but the trade deficit for June fell slightly, the government said. It stood at $14.14bn (pounds 8.7bn), down nearly 9 per cent from a revised $15.54bn the month before. However, for the year as a whole the trade deficit looks to be heading for a record $158bn, up from $110bn last year, as exports to Asia plunge. The deficit for the second quarter of the year was a record $44bn; the last quarter anywhere near this high was at the end of 1987.
A combination of relief at President Bill Clinton's decision to confess to a sexual relationship with Monica Lewinsky and healthy statistics led Wall Street higher. The Dow ended at 8,714.65, up 139.8 points. Encouraging corporate profits at Hewlett Packard, defying warnings of sharply lower earnings, also boosted the market.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments