What Today’s Federal Reserve Meeting Means for Investors

Jon Banking, Economy, Energy, Fiscal Policies, Government, Market Commentary

At the U. S. Federal Reserve meeting today (Wednesday), Fed Chairwoman Janet Yellen said she expects the pace of rate hikes in 2016 to be ‘gradual,’ although that could change with economic conditions.
At the U. S. Federal Reserve meeting today (Wednesday), Fed Chairwoman Janet Yellen said she expects the pace of rate hikes in 2016 to be ‘gradual,’ although she conceded that could change depending on economic conditions.
For now, the Fed left interest rates unchanged at 0.50%. But economists predict at least two more 0.25% interest rate hikes this year. That would bring the Fed’s target interest rate up to 1% by the end of 2016. By June, the CME Group expects there’s a 51% chance of a rate hike.
The main reason for the Fed’s dovish stance today was inflation. Inflation is still lagging below the Fed’s 2% target due to falling oil prices.

This post was published at Wall Street Examiner on March 16, 2016.