Asset managers welcome Fed rate hike but warn of 'tricky path' under Trump

Third rate rise since December 2015

Daniel Flynn
clock • 7 min read

Asset managers have welcomed the Federal Reserve's decision to raise US interest rates by 25 basis points (bps), though some have warned pursuing two further hikes this year may be "tricky" if President Donald Trump continues aggressively to pursue deregulation, tax cuts and more government spending.

The Fed increased interest rates by 25bps to the range of 0.75%-1% following a two-day meeting of its Federal Open Market Committee (FOMC). It also said it hopes to raise rates three times throughout 2017. In a statement, the FOMC said it raised rates because the labour market has continued to strengthen since its February meeting, while economic activity has continued to expand at a moderate pace. "Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have ...

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

Shake it off: Why it pays to keep politics out of portfolios

Shake it off: Why it pays to keep politics out of portfolios

Taylor Swift and Travis Kelce finally reach the pages of PA

Chris Justham
clock 16 February 2024 • 3 min read
UK enters technical recession as economy shrinks 0.3% in Q4 2023

UK enters technical recession as economy shrinks 0.3% in Q4 2023

Commentators predict the recession will be a 'shallow and short-lived one'

Cristian Angeloni
clock 15 February 2024 • 2 min read
UK inflation moves 'sideways' in January staying at 4%

UK inflation moves 'sideways' in January staying at 4%

Inflation fell 0.6% from December - the largest drop in a year

James Baxter-Derrington
clock 14 February 2024 • 2 min read