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THE DAILY HERALD, Thursday, March 16, 2017 Business 31

WASHINGTON--The U.S. confidence in the path the and Yellen emphasizing that
Federal Reserve raised in- economy is on.” future rate increases would
terest rates on Wednesday The Fed also stuck to its be “gradual.” At the current
for the second time in three outlook for two additional pace, rates would not return
months, a move spurred by rate increases this year and to a neutral level until the
steady economic growth, three more in 2018. The cen- end of 2019.
strong job gains and confi- tral bank lifted rates once in Rather, the Fed’s statement
dence that inflation is rising 2016. said the inflation target was
to the central bank’s target. Stock markets extended “symmetric,” indicating that
The decision to lift the tar- gains and bond yields fell on after a decade of below-tar-
get overnight interest rate by the benign economic outlook get inflation it could tolerate
25 basis points to a range of and the continued steady a quicker pace of price rises.
0.75 percent to 1.00 percent path of rate rises signaled by “It relieves some of the fears
marked a convincing step the central bank. The dollar we’ve had that perhaps the
in the Fed’s effort to return was trading lower against a Fed was going to raise rates Federal Reserve Chair Janet Yellen speaks during a news conference after a two day Federal
monetary policy to a more basket of currencies. faster in the future. They’ve Open Market Committee (FOMC) meeting in Washington, U.S., on Wednesday.
normal footing. Fed Chair Fed policymakers noted that chosen not to signal that,”
Janet Yellen pointed to inflation was now “close” said Brad McMillan, chief three months, well above the ness, did not rule out infla- view of how President Don-
growing faith in the econo- to the central bank’s 2 per- investment officer at Com- 75,000 to 100,000 needed to tion edging above target. ald Trump’s policies may im-
my’s trajectory. cent target, and that busi- monwealth Financial. keep up with growth in the “This seemed like a good pact the economy. “We have
“We have seen the economy ness investment had “firmed Labour groups have urged working-age population. The time to remind Americans not discussed in detail poten-
progress over the last several somewhat” after months of the Fed to raise rates as jobless rate is 4.7 percent, that ... sometimes it (infla- tial policy changes that could
months in exactly the way we weakness. However, they did slowly as possible so hiring at or near a level consistent tion) is going to be below 2 be put into place and we have
anticipated,” Yellen said in a not flag any plan to acceler- can continue and wage in- with full employment. percent, sometimes it is go- not tried to map out what our
press conference following ate the pace of monetary creases take hold. U.S. job The Fed projected that the ing to above 2 percent,” Yel- response would be,” Yellen
the end of a two-day policy tightening, with the policy- gains have averaged 209,000 unemployment rate would len told reporters. “Two per- said. “We have plenty of time
meeting. “We have some setting committee reiterating per month over the past fall to 4.5 percent this year cent is not a ceiling.” to see what happens.”
and remain at that level Fresh economic forecasts She added that she had held
through 2019. Yellen, who released with the statement meetings with Treasury Sec-
has consistently said that the were largely unchanged from retary Steven Mnuchin, and
Fed was better equipped to those of the December policy met with Trump once since
fight inflation than a fresh meeting and gave little indi- he took office.
downturn or surge in jobless- cation the Fed has a clear

BRUSSELS--The European recent years offering lower ority actions in retail finan-
Commission will propose fees. cial services for the next two
rules by the end of 2017 to The “Consumer finance years, also proposes increas-
cut retail fees imposed on action plan” draft said the ing the price-transparency
cross-border payments made Commission will by mid 2018 and protection for people
inside the EU with curren- also consider measures to renting cars as well as drivers
cies other than the euro, ac- increase the transparency who are victims of accidents
cording to a draft document of conversion rates for EU outside their country. It also
of planned regulatory chang- consumers using payment proposes common standards
Members and supporters of the National corp political party erect a wall of concrete blocks es to consumer financial ser- cards or withdrawing money to assess consumers’ finan-
outside a branch of Sberbank, which is the local subsidiary of Russia’s largest lender, during vices. in other member states, in a cial credentials by the end of
a protest in Kiev, Ukraine, March 13, 2017. EU regulations already en- bid to bring down costs for next year to make it easier
sure equal pricing on trans- shoppers. Brussels also plans to get a loan in a foreign EU
action charges for transna- to make it easier for consum- country.
tional payments within the ers to switch between retail The Commission also said it
euro zone made in euros, but financial services and to im- plans to favour the take-up of
charges for other EU curren- prove the reliability of com- innovative financial services,
cies such as the British pound parison websites, the docu- known as fintech, although
and Polish zloty are not regu- ment showed. no concrete proposals are in-
lated. The document shows The paper, which lists pri- cluded in the action plan.
KIEV--Ukraine will impose The banks have already been curity and Defence Council, the EU executive plans to ex-
sanctions on the Ukrainian banned from increasing their which earlier on Wednesday tend the rules to all EU cur-
subsidiaries of Russian state- assets and deposits following also halted all cargo traf- rencies on transactions made
owned banks, the central a breakdown in relations be- fic with rebel-held territory, across the entire bloc.
bank said on Wednesday, tween Ukraine and Russia in formalising an existing rail “Fees for such cross-border
part of a wider crackdown 2014 due to Moscow’s annex- blockade that has fuelled the transactions typically remain
over increased tensions in ation of Crimea and support worst political crisis in nearly very high and well above the
eastern separatist regions. for pro-Russian separatists. a year. Increased political level of fees for purely na-
The restrictions will ban the “These banks have a high tension and a flare-up in the tional transactions in non-
banks from taking money out level of debt to their parent eastern conflict earlier in euro currencies, with high
of Ukraine, Kateryna Rozh- structures. Sanctions prevent 2017 has prompted activists minimum fees that make
kova, a deputy central bank these debts being paid,” Ro- to protest against the con- small transactions very ex-
chief, told journalists in a zhkova said. tinued presence of Russian pensive,” the Commission
briefing. Sberbank’s press office said banks in Ukraine. said in a document expected
Five Russian state-owned it could not comment fully On Monday, Sberbank said to be formally adopted next
banks are present in Ukraine until the decision was final- it was concerned by the pro- week.
with a combined market ised, but expressed hope that tests, which included a na- The measure, if approved
share of 8.6 percent and li- Ukraine’s authorities would tionalist group walling up the by legislators and EU states,
abilities of 36 billion hryv- show “wisdom and fore- entrance to one of its branch- would hit banks who profit
nia ($1.3 billion). Sberbank, sight.” es in Kiev with masonry and the most from the charges.
VEB and VTB are among The new sanctions were cement. Internet-based payment
the top 20 largest lenders. requested by Ukraine’s Se- services have developed in