JAKARTA (TheInsiderStories) — Good morning! Federal Open Market Committee policy has been rising the recession risk to 10 percent from 20 percent in United States (US), said Goldman Sachs studies. The improving condition also gave a recession delay from the fourth quarter of 2018 to the following year.
Goldman Sachs also hoisted that US economic growth in the first quarter to nearly 2 percent from just 1 percent. Improving financial condition since the beginning of this year was caused by the Federal Reserves’ (Fed) softened policy after raising the rate four times last year.
America’ financial conditions, including capital market and interest rate, have loosened significantly, with the financial condition index is turning around 80 percent of the tightening in the fourth quarter of 2018. By the faded tightening effect, the Fed may be willing to review their policy, as shown in the January minutes.
Previously in the minutes, The Fed predicted that US economy would be weakening. Other than that, The Fed indicated that there will be no rate hike this year, affirming the word “patient” had repeatedly said by Fed top officials.
At the Spring meeting in Washington, International Monetary Fund said that policy decision makers should be aware of the increasing public debt ratios. The agencu then suggested government to prepare the next downturn or financial crisis and upgrade fiscal policy.
While, North Korean Leader Kim Jong Un mentioned that he will give a serious hit to countries that are giving sanctions, and saying his country is independent. Kim then indicates that he will sustainably focus on North Korea’ economy development.
“We must give a serious blow to the enemy forces who are wrongly determined to impose us with sanctions, by advancing socialist construction to a high degree of independence that is in accordance with our circumstances and country, based on our own strength, technology and resources,” said the leader.
This is Kim’ first statement about North Korea position after the meeting with the US. In the mean time, the US and North Korea relations went deteriorating after the failed-to-reach-agreement meeting in Hanoi, last February.
In Indonesia, manufacture industry performance is improving. Bank Indonesia prompt manufacturing index was recorded at 52.62 percent in the first quarter, higher than 52.58 percent in the fourth quarter of 2018.
The hike shown in the rising business activity of manufacture industry. Based on the central bank’ business activity survey, Indonesia’s manufacture industry weighted net balance was 1 percent in the first quarter, three times higher than 0.32 percent in the previous quarter.
Rupiah position against Dollar was hardly moving ended to 14,178.45 against the Greenback. But the Jakarta Composite Index slumped by 1.05 percent to 6,410.16, though there was Rp546.8 billion net buys.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia