The US Federal Reserve has left interest rates unchanged, citing a healthy economy with strong employment gains, strong household spending and inflation near its 2% target, however, policymakers made note of the dip in growth of business investment. Given that a decline in investment growth can hurt GDP, since investment helps create jobs, builds new factories, and raises productivity with upgraded equipment, policymakers are debating if the economy has reached a plateau following the $1.5tn tax cut package. In India, the government is expected to announce an increase in fuel prices on Monday, which will affect both consumers and businesses.
The US Federal Reserve has left interest rates unchanged, citing a healthy economy with strong employment gains, strong household spending and inflation near its 2% target, however, policymakers made note of the dip in growth of business investment. Given that a decline in investment growth can hurt GDP, since investment helps create jobs, builds new factories, and raises productivity with upgraded equipment, policymakers are debating if the economy has reached a plateau following the $1.5tn tax cut package. Nevertheless, the Fed is expected to raise interest rates in December, having increased rates three times so far this year.