U.S. Federal Reserve expecting further rate hikes on the way

Martin Crutsinger, The Associated Press</span>
Published Friday, July 7, 2017 12:46PM EDT

WASHINGTON -- The U.S. Federal Reserve says it expects the U.S. economy will strengthen and warrant further gradual increases in its key interest rate.

That rate forecast was included in the Fed's semi-annual monetary report to Congress, which Chair Janet Yellen will deliver to Congress next week. The Fed has raised interest rates three times since December, pushing its benchmark rate to a range of 1 per cent to 1.25 per cent.

The Fed noted that policymakers still expect one more rate hike this year and another three hikes in 2018.

The Fed says this projected pace of hikes would still allow the labour market to keep strengthening and inflation to climb to the Fed's 2 per cent target. The Fed also signalled that it expects to begin reducing its massive bond holdings this year.

Let's block ads! (Why?)