Fed Looks to Up the Ante

During last month’s open market committee meeting, Federal Reserve officials reaffirmed their commitment to gradually raise the benchmark lending rate. Minutes showed an ongoing debate over how many more rate increases would be needed to keep the economy stable for the long run. Policy makers unanimously increased their benchmark rate for the second time in 2018 and the consensus moving forward appears to support an increase to four hikes from three, which was the previous plan. This despite rising risks from trade battles and emerging market turmoil that could slow the tailwinds from fiscal policy. Yields on 10-year Treasuries have settled from the 3% highs of June to 2.84%.

2018-07-06T13:17:48+00:00