The Hindu Newspaper Editorial – Daily Vocab List Date 17­03­2017
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By pointing to gradual (ꬅिमक/धीरे ­धीरे ) rate increases, the Fed reassures (यक़ीन िदलाना) markets and
policymakers.
The U.S. Federal Reserve has resumed (दु बारा आर㤂 करना) normal monetary (मौिꬅक) service by raising
interest rates for the second time in three months. The Fed’s decision (िनण塪�य/िविनퟬ�च) on Wednesday
reflects its confidence (आ嘅िव锄ास/िव픅ंभ) in the continuing expansion (िवार/वृ 埳�埸�/फैलाव) and signals that
its efforts to reflate the world’s largest economy are largely on track — with overall inflation (मु ꬅ ाퟺ�ीित/
मु ꬅ ा­िवार) seen to be stabilising (埳�𐀆थर) around its longer­run target of 2% over the next couple of years.
Significantly, Chair Janet Yellen stressed (जोर िदया) that policymakers expect (अपे ៜ�ा करना) the
strengthening economy would warrant “gradual increases” in the benchmark federal funds rate to ensure
(सुिनि韂�त करना) that the monetary policy stance (ꬅख/मु ꬅ ा) remains accommodative (अनुकूल) of growth,
even as price stability is ensured. This emphasis(जोर/मह嘅) on ‘gradual’ provides (ꬅदान करना/मु हैया
करना) a degree of policy predictability (भिव埮�वाणी/पू व塪� कथनीयता) that markets, for now, can broadly factor
in two more rate increases (वृ 埳�埸�/बढ़ाई/िवार) of one quarter of a percentage point each for the rest of 2017
— especially when coupled with a median projection(ꬅៜ�ेपण/ꬅोजै韀�/मनसूबा) for the signalling rate to reach
1.4% at the end of the year, from the current 0.75%­1.0% range. The statement has allayed (र韜� कर
िदया) fears of an accelerated rate normalisation, that could have triggered a sharp jump in outflows from
emerging markets such as India. Investors worldwide are bound to feel more reassured that one of the
world’s key economic engines is in good shape and that should bode(भिव埮�𐀆दाणी) well for global demand.
India’s exporters, including of software services, are also likely to see a silver lining in the Fed chief’s
reference to a distinct (अलग) firming in business investment, after having been soft in 2016, that has helped
put business sentiment at “favourable levels”.
Ms. Yellen also flagged caveats (कैिदयों) to the Fed’s projections. Averring (縄ढ़ता से कहना) that policy is
“not on a pre­set course”, she pointed to the potential impact that changes in fiscal policy, among other
factors, could have on the economic outlook. While acknowledging that it is still too early to anticipate
(आशा करना/ꬅ埧�ाशा करना) exactly how the Trump administration’s fiscal policies may unfold, the central
bank is intimating that it will be closely monitoring the new dispensation (अनुद ान/िवतरण/⼂व𐀆था)’s broad
budget plans and remains ready to change policy tack if it were to perceive any risks to its price stability
goals. There is also the matter of when the Fed may decide to initiate the process of normalising its balance
sheet. Given that the central bank’s holdings of Treasury bonds and mortgage­backed securities reached
record levels in the aftermath of the 2008 financial crisis, any plan to begin unwinding these holdings will
need to be very carefully calibrated and communicated in advance to ensure that global markets don’t
witness a repeat of the ‘taper tantrum’ of 2013. Ms. Yellen stressed just that when she said the Fed “as a
matter of prudent planning” had discussed issues related to an eventual change to its reinvestment policy
and, while no decisions were taken, would ensure that the process be “gradual and predictable”.
Courtesy: The Hindu
List of Most Important words with Hindi Meaning, Synonyms and
Antonyms from The Hindu Newspaper Editorial Return to normal
1.Confidence (आ嘅िव锄ास/िव픅ंभ)
Synonyms: Trust, Belief, Faith, Credence, Conviction
Antonyms: doubt, fear, hesitation, irresolution
2.Stress (बल दे ना/ज़ोर दे ना)
Synonyms: Overstretch, Overtax, Emphasize, Worry, Hassle
Antonyms: insignificance, unimportance, ignorance
3.Projection (ꬅៜ�ेपण/ꬅोजै韀�/मनसूबा)
Synonyms: Forecast, Prediction, Prognosis, Outlook, Expectation
Antonyms: depression
4.Allay (िनराकरणकरना/कम करना)
Synonyms: Reduce, Diminish, Decrease, Lessen, Assuage
Antonyms: aggravate, agitate, incite
5.Anticipate (आशा करना/ꬅ埧�ाशा करना)
Synonyms: Expect, Foresee, Predict
Antonyms: doubt, be amazed, be surprised
6.Dispensation (अनुद ान/िवतरण/⼂व𐀆था)
Synonyms: Exemption, Exception, Exoneration, Reprieve
Antonyms: disfavor, whole, denial, veto