Fed Strategy Ahead of Trump Presidency: Raise Rates
December 15, 2016
As expected, the Federal Open Market Committee (FOMC) raised the target Fed Funds rate by 25 basis points (bps). What surprised markets is that the FOMC projected three rather than two rate hikes of 0.25% in 2017. What may be more interesting is that the FOMC economic projections did not reflect any significant changes from their September levels, other than the one additional rate hike in 2017.