Industry reaction: Fed will have to 'tread carefully'

In a widely anticipated move, the US Federal Reserve has announced another interest rate hike of 0.25%, while also signalling another increase is likely to come this year.  Weaker economic data has weighed on the dollar and US treasury yields, however, as consumer price inflation slowed for the fourth month in a row, to 1.7% in May. The asset management industry was quick to comment on what we might now expect from the Fed as the US economy edges further along the path to 'normalisation': Lee Ferridge, head of multi-asset strategy for North America at State Street Global Markets: "...