What to retain from the Fed meeting?
• Fed raised interest rates by 25bp to 2%-2.25% for the third time in 2018 as expected by the markets.
• The Fed dropped the word “Accommodative” from the policy statement.
• Tariffs: no impact on the aggregate performance of the US economy at this stage. On the downside risk, Tariffs could drive up materials costs and cause higher inflation.
• FOMC members showed stronger confidence in short term growth prospects and higher uncertainty around 2020-2021. Median forecasts for interest rates pointed to one more rise this year, followed by three increases in 2019 and another in 2020. No hike expected in 2021.
Read the complete white paper at the link beneath Related Links