S&P Global Ratings Think Fed Would Increase Interest Rates Again

S&P Global Ratings Think Fed Would Increase Interest Rates Again


Under Trump administration the united states of America managed to grow at a reasonable rate, but it seems like Feds doesn’t like some of trump’s policies. In 2018 the federal reserve raised the rate of interests four times which ultimately slowed down country’s economy and increased inflation. Now S&P global rating company think such kind of things can happen again since Fed has not got over with its raising interest rate phase. According to credit rating companies, the Fed is expected to increase rate of interest in 2019. Because a few months ago Feds executive said that they are ready to hike interest rate at least two times in this new year.

Whenever feds increase the rate of interest, it adversely effects on consumer market hence consumer power diminishes. However, in a recent Federal Open Market Committee meetings discussion it’s been concluded that Fed is not going to raise interest at the end of the first quarter.

Fed is adopting a wait and watch method since global economy currently is in a bad phase and raising interest rates during such time will ultimately collapse country’s economy. Rating companies are already predicting that US will be managed to grow at only two percent and will be adding approximately 130000 jobs every month.

Trump administration managed to add more jobs than anyone’s expectations, but that doesn’t mean country’s economy will get right. If feds continuously raise rate of interests, then it will be hard for government to give subsidies and other things to ordinary citizens. Asian stock market is also not performing well from the last few months which is concerning many economists. USA is still facing some significant problems because of its trade war with China since many experts are predicting that it could bring down country’s economy.