Capital Alert: September 27, 2018

Fed Shores Up Rate Hikes

The Federal Reserve raised its overnight lending rate this week for the third time this year in response to a strong U.S. economy. The Fed’s action pushed its key interest rate to a range of 2% to 2.25%. As important and perhaps more impactful, the central bank reinforced its plan for a fourth increase before year’s end and three hikes in 2019. U.S. Treasury yields held steady after the announcement, currently at 3.05%.