FED OFFICIALS PREDICT MORE THAN 3 RATE INCREASES IN 2017

Posted on March 30, 2017

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WSJ: “Most Federal Reserve officials expect to raise short-term interest rates two more times this year, but some are now warning a brightening economic outlook could prompt them to lift borrowing costs even more. Fed Vice Chairman Stanley Fischer, a close ally of Chairwoman Janet Yellen, reaffirmed the consensus view Tuesday, telling CNBC the central bank’s recent projection of two more rate increases this year in addition to the one earlier this month “seems to be about right, that is to say, it’s my forecast as well.”
Some officials, however, say they see a good chance the economy will perform better than expected—called upside risk in central-bank jargon—either because of its own strength or if it gets a boost from new tax, spending and regulatory policies sought by the Trump administration. If so, that could justify more Fed rate increases than currently envisioned to prevent the economy from overheating.”

Federal Reserve presidents in several states are predicting four increases.

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WSJ: Fed Officials Say They May Need to Pick Up Pace of Rate Increases

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Posted in: News, Politics