Fed Drops the Word ‘Accommodative’, Raises Rates to 2-2.25%
The Federal Reserve is getting used to raising rates. The central bank hiked its key lending rate for the third time in 2018. The Fed continues to raise rates into a strengthening US economy. The first speaker, Gary Kaltbaum from Kaltbaum Capital, reminds investors,
“The last time we had an economy like this the Fed was at 6% and higher in the early 2000s. On top of being at 2% which is nothing, you still have Europe and Japan at negative four-tenths of a percent. And still printing money. And China just went on another easing program. So, all this easing money continues to backstop economies around the globe.”
Raising Rates Ahead | Fed Sees Longer-Term Interest Rate at 3%
FBN’s Charles Payne, the former fed adviser, weighs in on the latest Fed rate hike. Payne is a bit worried about moving rates higher too quickly. He explains,
“I think the sense right now is that Jerome Powell and even some of the other well-known dove’s on the Fed, are going to take something of a step back. Throw away the old script, throw away the old book, that hey, if X hits this, then we automatically do Y.”
More predictions about forwarding guidance and the potential for future rate hikes are discussed.