U.S. Outlook: What we expect from the Federal Reserve next week
Amid much anticipation, we expect the FOMC to vote next Wednesday to raise the Fed funds target rate range another quarter percentage point to between 1.25% and 1.50%.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Dec. 8.Key observations:
- The Federal Reserve reported that U.S. household net worth hit an all-time high of almost $97 trillion.
- The median forecast from the Fed is likely to remain at three quarter-point rate hikes for next year.
- Our view is that two additional quarter-point rate hikes next year is actually more likely.
- Janet Yellen might want to sneak in a short public parting message to help define her legacy as Fed chair.