The Fed, which raised rates three times last year and in December forecast three more hikes for this year, said on Wednesday it expected “further gradual” rate increases will be warranted. US stocks rose slightly after the Fed statement before paring gains. Short-term interest rate futures showed traders adding slightly to bets the Fed would raise rates three times in 2018, starting at its next meeting in March. Inflation view upgradedThe Fed’s gradual path of rate increases will hinge on a continued pickup in inflation, which has lingered below target despite a strong job market. Fed policymakers have said they expect an acceleration this spring, once short-term factors that held down inflation are squarely in the rear-view mirror.

Source: Mint February 01, 2018 03:33 UTC