Articles Tagged with ''Federal Reserve''

Tax reform could cause Fed to speed up rate hikes

Fed minutes show most on board with raising federal funds rate
Minutes released Wednesday by the Federal Reserve showed that the Federal Open Markets Committee could move at a quicker pace due to tax reform. While the Fed forecasts a median growth of 2.5% in 2018, the minutes showed most members will raise their expectations due to tax reform.
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Experts: The Fed will revise its estimate to four rate hikes in 2018

Already increased economic growth projections
At the end of its December meeting Wednesday, the Federal Reserve announced 2017’s third and final rate hike as well as its forecast for 2018. The Fed did increased its economic growth predictions for next year, leading experts to say the Fed will later revise its rate hike forecast from three times in 2018 to four.
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Fed raises rates with expectation economy will improve next year

Target federal funds rate increased to 1.25% to 1.5%
To the shock of no one, the Federal Reserve announced its final rate hike of 2017 at the end of its December Federal Open Markets Committee meeting. In the Committee's statements about its general economic outlook, it implied that more rate hikes will follow in 2018 and beyond.
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Fed interest rate hike this week inevitable

Top media outlets predict 25 basis point increase
No one is predicting the Federal Reserve won’t raise interest rates in its Federal Open Markets Committee meeting later this week. Top media outlets are all forecasting a 25 basis point increase, saying the futures markets is giving the move 90% odds.
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Senate Banking Committee approves Powell to lead Fed

All but one Senator voted for his nomination
As expected, the Senate Banking Committee overwhelmingly approved Jerome Powell Tuesday to lead the Federal Reserve. All the panel’s Republican and Democrat members voted for Powell except one single Democrat, and now, this bipartisan support all but seals Powell’s future as Federal Reserve Chair.
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Fed sanctions Peoples Bank for misleading borrowers on mortgage fees

Ordered to pay $2.8 million in restitution to affected borrowers
Kansas-based Peoples Bank repeatedly misled borrowers about the fees they paid under the auspices of lowering the interest rate on their mortgages, the Federal Reserve Board said on Tuesday. The Fed is requiring Peoples to pay approximately $2.8 million into an account to provide restitution to the affected borrowers.
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Yellen announces resignation from Federal Reserve Board of Governors

Effective upon swearing in of successor
Fed Chair Janet Yellen, who was appointed to the Board by former President Barack Obama to serve until January 21, 2024, announced Monday she will resign from the Fed upon the swearing in of her successor. Although Yellen’s term was not set to expire until 2024, she will now step down from her position early next year.
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Goldman Sachs predicts 4 rate hikes in 2018

Raised GDP forecast for the year
Goldman Sachs updated its forecast for next year, predicting that rising inflation and a tight labor market will cause the Federal Reserve to raise rates four times. This is more increases than Wall Street expects, but other economists agree with Goldman’s forecast.
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