• The Federal Reserve raised interest rates on Wednesday but left its rate outlook for the coming years unchanged even as policymakers projected a short-term jump in U.S. economic growth from the Trump administration’s proposed tax cuts.
In an early verdict on the tax overhaul, Fed policymakers judged it would boost the economy next year but leave no lasting impact, with the long-run potential growth rate stalled at 1.8 percent. The White House has frequently said its tax plan would produce annual GDP growth of 3 percent to 4 percent.
The expected fiscal stimulus, coming on the heels of a flurry of relatively bullish data, cleared the way for the U.S. central bank to raise rates by a quarter of a percentage point to a range of 1.25 percent to 1.50 percent. It was the third rate hike this year.
But the Fed’s forecast of three additional rate increases in 2018 and 2019 was unchanged from its projections in September, a sign the tax legislation moving through Congress would have a modest, and possibly fleeting, effect.
• Wall Street’s top banks expect the Federal Reserve to raise U.S. interest rates three times in 2018, matching the number of rate hikes this year and the central bank’s own outlook, as policy-makers turned more upbeat on economic growth and the jobs market.
That said, Powell, who is widely viewed as a centrist on monetary policy, is seen overseeing a more hawkish Federal Open Market Committee, the central bank’s policy-setting group, in 2018 than the current set of voting members this year.
• Fed chief Yellen says bitcoin is a 'highly speculative asset'
- Fed Chair Janet Yellen says bitcoin is "not a stable source of value" and is "a highly speculative asset."
- Yellen adds "the Fed doesn't really play any regulatory role with respect to bitcoin."
- The outgoing Fed chair was speaking at a press conference following the central bank's decision to raise interest rates a quarter point.
• Congressional Republicans reached a deal on final tax legislation on Wednesday, clearing the way for final votes next week on a package that would slash the U.S. corporate tax rate to 21 percent and cut taxes for wealthy Americans.
• The chairman of the U.S. House Appropriations Committee on Wednesday introduced a bill to fund the government until Jan. 19 while Congress works on longer-term legislation, the panel said in a statement.
The bill unveiled by Republican Representative Rodney Frelinghuysen would fully fund national defense programs for the entire 2018 fiscal year and includes money for the Children’s Health Insurance Program, the statement said.
• The Hong Kong Monetary Authority raised the base rate charged through its overnight discount window by 25 basis points on Thursday to 1.75percent.
• Prime Minister Theresa May’s government was defeated on Wednesday, when lawmakers forced through changes to its Brexit blueprint that ministers said could endanger Britain’s departure from the European Union.
In a blow to May, already weakened after losing her Conservative Party’s majority in a June election, the 650-seat parliament voted 309 to 305 in favor of an amendment to hand lawmakers more say over a final exit deal with the EU.
Britain urgently needs a “standstill” deal to keep its ties with the European Union unchanged in a post-Brexit transition period, and will probably need an adaptation phase after that for sectors such as financial services, a group of lawmakers said.
• Oil prices slipped for a second straight day on Wednesday, as a slump in U.S. crude stockpiles was offset by a larger-than-forecast rise in gasoline inventories and as U.S. crude output continued to grow to record highs.
U.S. West Texas Intermediate crude settled down 54 cents at $56.60 a barrel, a 1 percent decline. Brent crude ended down 1.4 percent, or 90 cents, at $62.44 a barrel.
Reference: Reuters, CNBC
Thai
Eng