Fed increases rates by 25bps; hints at two more hikes in 2017

Third rate rise since December 2015

Daniel Flynn
Fed increases rates by 25bps; hints at two more hikes in 2017

In a move widely expected by markets, the Federal Reserve has increased interest rates by a further 25bps, marking its third rise since December 2015, as the US economy continues to improve.

Following its two day March meeting, the Federal Open Market committee (FOMC) has increased the Federal Funds Rate in the US to 0.75%-1% up from 0.5%-0.75%. In its forward guidance, the Fed announced it expects to stick to its forecast of three rate increases in 2017. All but one committee member - Neel Kashkari - voted to increase rates again after increasing them to 0.5%-0.75% from 0.25%-0.5% last December. Interest rates moved upwards for the first time since 2006 in December 2015 from lows of 0%-0.25%. Following the news, the US dollar index, which gauges the value against a ba...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Investment

Josh Mayne, Lowes Financial Management

Structured products in Q2: Positive returns in volatile market

Q2 2022 maturity results

Josh Mayne
clock 09 August 2022 • 2 min read
Ritu Vohora, T. Rowe Price

Ritu Vohora: Bear market rally or a bullish inflection?

Pain for equities

Ritu Vohora
clock 08 August 2022 • 5 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read