Asset managers welcome Fed rate hike but warn of 'tricky path' under Trump

Third rate rise since December 2015

Daniel Flynn
clock • 7 min read

Asset managers have welcomed the Federal Reserve's decision to raise US interest rates by 25bps, but some have warned that pursuing two further hikes this year may be "tricky" if President Donald Trump continues to aggressively pursue deregulation, tax cuts and more government spending.

The Fed increased interest rates by 25bps to the range of 0.75%-1% following a two-day meeting of its Federal Open Market Committee (FOMC). It also said it hopes to raise rates three times throughout 2017. In a statement, the FOMC said it raised rates because the labour market has continued to strengthen since its February meeting, while economic activity has continued to expand at a moderate pace. "Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have ...

To continue reading this article...

Join Investment Week for free

  • 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
member?

Login

More on Investment

Aegon AM launches UK-domiciled global income fund

Aegon AM launches UK-domiciled global income fund

In response to client demand

clock 27 June 2025 • 1 min read
CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

CCLA's Charlotte Ryland and Joe Hawkes: How to position for the end of the 90-day tariff pause

Focus on quality

Charlotte Ryland and Joe Hawkes
clock 26 June 2025 • 4 min read
Almost half of UK investors using social media for financial advice

Almost half of UK investors using social media for financial advice

Many sources 'unregulated and unverified’

Sorin Dojan
clock 23 June 2025 • 2 min read
Trustpilot