Rate Rises

The Fed enters 2018 with no clear plan for raising rates. At the last Fed meeting in December, 6 officials expected two rate hikes or less in 2018, 6 expected three hikes and 4 expected four or more rate increases. More inflation will beget more hikes but how much inflation increases is the great unknown. Fed forecasts have generally been overestimates, but not this year. At least three hikes.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.