Rate Hikes: Spending Plans and Trump Tax

rate hikes: The real anticipation surrounds what Fed officials may or may not say about the pace of future rate hikes against the backdrop of Donald Trump election, according to The Toronto Star. Will they signal that they expect to raise rates very gradually in the coming year Or will they say the risk of high inflation resulting from Trump tax and spending plans may require accelerated rate hikes On this, economists and investors agree The Fed will raise its key rate by a modest quarter-point to a range of 0.5 per cent to 0.75 per cent a move that will likely lead to slightly higher rates on some consumer and business loans. Kevin Lamarque / Reuters By Martin Crutsinger The Associated Press Mon., Dec. 12, 2016 WASHINGTON There isn t much doubt about what the Federal Reserve will do when its latest policy meeting ends Wednesday It all but certain to raise its benchmark interest rate its first increase in a year. The Fed last increased rates last December, when it raised its benchmark rate from a record low set at the depths of the 2008 financial crisis. Article Continued Below Yet how the Fed will devise its rate policies in light of Trump policies isn t clear and might not be clear even after it issues a statement and Fed chair Janet Yellen holds a news conference Wednesday. Never has the Fed telegraphed a rate hike as thoroughly as this one, DMJ Advisors chief economist David Jones said. (news.financializer.com). As reported in the news.