Feds Raise Rates –
The Federal Open Market Committee committee voted to raise the Fed Funds rate by .25%, bringing the range to 1.50% -1.75%. This is the sixth time they have voted to raise rates since December 2015. In a statement released after today’s meeting the committee is quoted as saying. “The economic outlook has strengthened in recent months,…” Today was the first meeting presided over by new Federal Reserve chair Jerome Powell
Here are a couple of highlights:
- Labor market continues to strengthen.
- Economic activity rising at a moderate rate.
- Inflation continues to run below the target of 2.0%.
- Inflation based compensation has increased in recent months but remains low.
- 3 rate hikes are to be expected in 2018. 2019 and 2020 have been increased with respect to additional Fed Funds rate increases
We believe the markets have dodged a bullet here. Seems to be something in here for everyone, dove or hawk. The lower inflation expectations are welcome and 2019 and 2020’s increase in rate hikes expected is too far off to be a huge worry. Head over to my facebook page to check out a short video about today’s events and this afternoons press conference.