| 2016-11-22 10:50:02|
10:50 11/22 11/22/16
Fed Policy Outlook: a 25 bp Fed rate hike on December 14 is a done deal
Fed Policy Outlook: a 25 bp Fed rate hike on December 14 is a done deal unless there is some market catastrophe. So now it's the trajectory of normalization that will be important for the markets. The FOMC has stressed gradualism, and that's likely to be the case for 2017, with the rate of inflation likely to be the trigger for a faster or slower clip. Two rate hikes next year seem probable since it may take some time before the economy kicks into gear and price pressures emerge. Additionally, the voting line up is less hawkish than the current group, with Evans, Kashkari, Harker, and Kaplan taking over for George, Mester, Bullard and Rosengren.