Fed Meeting Will Show Tilt To More Aggressive Rate Hike Policy

Investing.com – There’s little chance the Federal Reserve will raise interest rates at its meeting Wednesday, but economists say the central bank is likely to make it clearer than ever that two more rate hikes are coming this year.

Thus far, Fed Chairman Jerome Powell has only confirmed expectations of two more hikes, but analysts say the Fed is likely to be more explicit about it at this point.
Economists point to the minutes from the June FOMC meeting and more recently Powell’s testimony before Congress.

A majority of the FOMC committee indicated at the June meeting they were in favor of two more hikes this year.

Plus, both the FOMC meeting minutes and Powell’s testimony cited a strengthening economy and a rate of inflation “close” to the Fed’s objective of 2%.

That economic strength was evident in the recent GDP report, which showed a 4.1% annual growth rate in the second quarter

Economists say count on a quarter point increase in the federal funds rate at the September meeting and another at the December meeting, making four for 2018. 

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