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Fed Rate Pause Possible in 2019 | Oil Firms on Supply Cut Talks
Published November 16, 2018
Federal Reserve Chair Jerome Powell has laid out a scenario for a pause in the central bank’s interest rate hiking campaign sometime next year by highlighting potential headwinds to the US economy. Powell listed three possible challenges to growth in 2019: slowing demand abroad, fading fiscal stimulus at home and the lagged economic impact of the Fed’s past rate increases.
Oil prices rose on expectations that OPEC and its allies would agree to cut output next month, but prices were still down on concerns that the global market was oversupplied. WTI crude prices have hit a high of $57.89.
Mario Draghi, president of the European Central Bank, hinted at a possible dip in inflation due to euro zone firms dealing with a slew of uncertainties. The ECB still saw risks to the growth outlook as broadly balanced, Draghi said, but it would reassess the situation in December when new growth and inflation forecasts become available.
The United States imposed economic sanctions on 17 Saudi officials for their role in the killing of Saudi journalist Jamal Khashoggi. The sanctions limit access to the US financial system and freeze people’s assets. They will be implemented under an act which targets perpetrators of serious human rights abuses and corruption.