How many times will the Fed raise rates in 2019?

The U.S. Federal Reserve hiked interest rates in December to take its 2018 tally to four. Can investors expect the same in 2019?

David Brenchley 7 January, 2019 | 6:00PM

Federal Reserve chairman Jerome Powell faces increasing pressure from U.S. President Donald Trump - as well as nervous investors - to abandon his interest rate hiking cycle. Powell has delivered four rate hikes during his 11 months on the job, the latest being greeted by jeers from stock market participants as the S&P 500 dropped more 2% in response.

Speaking on Christmas Day and addressing rumours he’s considering firing Powell, Trump re-iterated his belief that the Fed is “raising interest rates too fast”. He added, however, that he was “confident… it will straighten” and noted his belief they are raising rapidly “because they think the economy is so good”.

After the latest rate hike in December, the Fed signalled it would become less aggressive in the coming 12 months, with the number of expected rises reduced to two, from three, and the longer-term expected interest rate reduced by 25 basis points to 2.75%.

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David Brenchley

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