Asset managers are widely anticipating a US interest rate increase to be announced by the Federal Reserve, but expect chair Janet Yellen to "disappoint" markets with a dovish outlook in the face of President-Elect Donald Trump's expansionary fiscal policy plans.
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 ...
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