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Fed: Expect Quicker Rate Increases

Due to steady economic growth and stronger job gains throughout the U.S., the Federal Reserve raised rates for the first time this year. The interest rate lifted by 25 basis points to a range of .75 percent to 1 percent.

With “growing faith in the economy’s trajectory,” the Fed believes it will be-able to raise the rates an additional 2 times this year and 3 more times in 2018. They trust the economy can now handle a slight quickening in pace to return the rate to a neutral level by the end of 2019 and reach the 2 percent target. However, economists remind us that the 2 percent target is not a ceiling…

For the most part, the new economic forecast remained unchanged from December’s meeting and it appears the economy will continue on at a balanced level. Though the Federal Reserve has not prepared a plan for any changes to the economy that may occur based on President Donald Trump’s policies.

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