Economic Strength Fuels Fed Hike
As expected, Fed officials raised the federal funds rate 0.25 percent at their September meeting to a range of 2.00 percent to 2.25 percent and reiterated expectations for another 0.25 percent rate increase at the December FOMC meeting. The committee upgraded their forecast for economic growth and expects inflation to track near their policy target rate. Fed policymakers revised their 2018 Real GDP forecast higher 0.3 percent to 3.1 percent, and expect core inflation to track 2.1 percent by year-end. For the full article and key points on this development, click here.