Financial report and financial trends
In the financial report for May there are several new events to point out. First of all, the US economy continues to grow at a moderate pace. Though a moderate number of new jobs was created in May 2017, of 138000, and that followed by unemployment rate to drop to 4.3%. Hence, that rate is the lowest since 2001. Then the US companies continue to produce good earnings, and the stock market shows steady growth.
Much as for the federal spending and lower taxes, they will be pushing on consumer prices to go up. During its meeting in May, the Federal Reserve Bank left the benchmark rate unchanged. In another event, the members of OPEC made no decision on crude oil production cuts. During the meeting they agreed to review the global strength, of whether or not the crude oil production cuts should be extended by another six months. Then, a technical group is to be called to examine the market conditions and impact of crude oil supply. Hence, the lack of clear decision to extend the production cuts, is likely to push the crude oil prices down. Then, the financial report showed the consumer price index moderate growth in May. While the consumer spending and personal income produced strong rise, with a high reading for consumer confidence. Hence, that predicts rise in inflation expectations.
What does it mean?
Hence, this produces sentiment to act to slow inflation rise by raising the interest rates. The Federal Reserve Bank members are inclined then to continue raising the interest rate. Hence, the market expects that the Federal Bank will raise the benchmark rate during their next meeting in June 2017. Then, such a decision would pull the financial securities rates up. This also produces direct impact on other financial instruments. So, the interest rates on financing for consumer and business needs would tend to go up. Of course, the interest rate for financing your needs depends on your credit score and other factors. Hence, for more info go through Ref 14.
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To find more “credit score and other factors” then go through Ref14.
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