Managers take cautious approach ahead of expected US rate rise

Following a two-day meeting of the Federal Open Market Committee (FOMC), the Federal Reserve is expected to announce an increase in the target range for its federal funds rate to between 0.5% and 0.75% later today, up from 0.25% to 0.5%. The move would come a full year on from the Fed's last rate hike in December 2015 - its first for over a decade - and has already been widely priced into markets, with federal funds futures implying a 100% probability of a rate rise since 21 November, up from 75% before the US election. Despite the likelihood of a marginal increase, many eyes will be ...