Fixed Fed

fomcAfter months of speculation, the Fed left interest rates unchanged. They expect to bump rates a quarter-point before year end, and anticipate raising rates by one percentage point per calendar year until the fed funds rate reaches 3.5% in 2018. In the end, global weakness and wider credit spreads stayed their hand. Lastly, with rates at zero, a rise in rates that might weaken the economy was considered too risky.

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