The committee also expects rates to go up at a faster pace next year compared to its December projections. However, it revised its core inflation projection, mildly overshooting the target of 2% in 2019. First, the strengthening economic outlook for the US economy augurs well for the global economy. The strength of the US and global economy will also support the ongoing recovery in the Indian economy. Second, although the Fed expects to gradually raise rates, global financial markets may still find higher rates difficult to handle.

Source: Mint March 22, 2018 23:15 UTC