Asset managers question Fed's 'aggressive' 2017 hiking path

Follows Yellen's dovish speech

Daniel Flynn
clock • 8 min read

After the Federal Reserve's widely anticipated move to raise US interest rates, asset managers have cast doubts over the central bank's ability to follow through with its revised rate path for 2017, as President-elect Donald Trump remains a "big known unknown" for markets.

The Federal Reserve (Fed), increased interest rates by 25bps to the range of 0.5%-0.75% following a two day meeting of its Federal Open Market Committee (FOMC). In a statement, the FOMC said it raised rates because "information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been expanding at a moderate pace since mid-year". The long-awaited hike follows last December's rate rise - the first in over a decade - and comes despite indicators earlier this year suggesting 2016 could ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Inflation and financial planning — focusing on the bigger picture

Inflation and financial planning — focusing on the bigger picture

Well-informed advisers can better guide their clients through turbulent times

Adam Leci
clock 07 June 2024 • 5 min read
More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read
Elections and advice: Planning in political and legislative uncertainty

Elections and advice: Planning in political and legislative uncertainty

‘It should not be based on speculation, always plan on current legislation’

Isabel Baxter
clock 08 May 2024 • 3 min read