Fed interest rates

central banker communication failure

Jerome Powell Does Not Believe The Current Fiscal Policy Is Sustainable

The Federal Reserve raised its benchmark interest rate by 25 basis points. The effective rate will evolve in a corridor between 2% and 2.25%. The dots graph reflecting monetary policy committee members’ expectations suggests 3 rate increases in 2019, 1 in 2020 and none in 2021. As pointed by Philippe Waechter from Natixis IM, this profile, for 2019 and 2020, is unchanged from last June forecasts.