https://www.benzinga.com/analyst-ra...deral-reserve-issues-fourth-rate-hike-of-2018
The Federal Reserve Issues Fourth Rate Hike Of 2018
On Wednesday, the Federal Reserve delivered the interest rate hike the markets were expecting. The Fed announced it will be upping the fed funds target rate by 0.25 percent to a range of 2.25-2.50 percent.
“The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term,” the Fed said in its statement.
Applying The Brakes?
The Fed also lowered its target projections for future interest rates. The Fed lowered its 2019 fed funds rate projection from 3.1 percent to 2.9 percent and its 2020 and 2021 projections from 3.4 percent to 3.1 percent. The Fed also lowered its 2018 U.S. GDP growth projection from 3.1 percent to 3 percent and its 2019 growth projection from 2.5 percent to 2.3 percent.
Finally, the consensus dot plot projections for 2019 suggest two more rate hikes next year, down from three rate hikes projected back in September.
Interest rates are already at their highest level of the past decade.
The Federal Reserve Issues Fourth Rate Hike Of 2018
On Wednesday, the Federal Reserve delivered the interest rate hike the markets were expecting. The Fed announced it will be upping the fed funds target rate by 0.25 percent to a range of 2.25-2.50 percent.
“The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term,” the Fed said in its statement.
Applying The Brakes?
The Fed also lowered its target projections for future interest rates. The Fed lowered its 2019 fed funds rate projection from 3.1 percent to 2.9 percent and its 2020 and 2021 projections from 3.4 percent to 3.1 percent. The Fed also lowered its 2018 U.S. GDP growth projection from 3.1 percent to 3 percent and its 2019 growth projection from 2.5 percent to 2.3 percent.
Finally, the consensus dot plot projections for 2019 suggest two more rate hikes next year, down from three rate hikes projected back in September.
Interest rates are already at their highest level of the past decade.
