Posted By RichC on June 14, 2017
Sort of a surprise to most Fed watchers today as the consensus was for the Federal Reserve to raise rates a 1/4 point in September, not June. Perhaps it won’t make much difference for the whole year, but Chair Janet Yellen obviously wants to stay ahead of the curve. The target inflation rate remain 2% as the Fed flexes its market moving muscle. According to Ms. Yellen, "All that we’re doing in raising rates is removing a bit of accommodation, heading toward a neutral pace. We’re not moving so aggressively as to put a brake on continued improvement in the labor market." Most watcher no long expect a September move, but are factoring in one more by the end of 2017.