With many anxious that the US Federal Reserve might ultimately be forced to quicken the pace of interest-rate increases to head off higher inflation, Federal Reserve officials concentrated on the impact of potential fiscal stimulus during their December policy meeting.
The majority on the committee echoed that a “gradual” pace of rate hikes over the coming years would probably remain appropriate, even though growing attention to the risks of increased government spending and tax cuts could spur faster growth than currently forecast.
Traders now see a rate hike by June as highly likely, according to prices of Fed Funds futures, which were little changed after the minutes were released. The Dow Jones Industrial Average rose 60.40 points, or 0.30%, to close at 19,942.16, after coming within just 44 points of the 20,000 level.
FOMC Proves More Hawkish
Daily Analysis - 05/01/2017