In the News

Fed Raises Rates, Signals Confidence in Strengthening Economy

(Reuters) The Federal Reserve raised interest rates on Wednesday and forecast at least two more hikes for 2018, signaling growing confidence U.S. tax cuts and government spending will boost the economy and inflation and lead to more aggressive future tightening.

Policymakers predicted rates would rise three times next year and two times in 2020, a further indication of confidence in the economy.

JUAN PEREZ, SENIOR FX TRADER AND STRATEGIST, Monex CONSULTING, WASHINGTON:

“The most important thing is the Fed sticking to its original plan of three rate hikes. Anymore would be too much. Any faster increases in borrowing costs could affect the economy. I think we are pretty good where we are in terms of the current pace of rate hikes. There was some thinking we could see up to four (hikes). The other thing is that the economic outlook has strengthened and that’s a good thing. It’s very consistent with what Powell told Congress. They do think the economy is strong enough for further increases in borrowing costs.”

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