Rick Rieder: Fed makes case for further rate normalisation

Moderate inflation

clock • 4 min read

Rick Rieder assesses the implications of the Federal Reserve's latest quarter-point increase in interest rates and explains why he expects the US central bank to raise them again three times next near - with a chance of four

The announcement of a further quarter-point policy rate hike by the US Federal Reserve's Federal Open Market Committee was not surprising - indeed it was widely expected. That is largely because it has become increasingly clear over the past year that what is commonly thought of as the Fed's dual mandate has effectively either been achieved (in the case of labour markets) or is likely to be shortly met (price stability of near 2%). In fact, after another robust month of job growth in November, during which 228,000 jobs were gained, combined with a 4.1% unemployment rate, the US economy c...

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

Bank of England 'presses pause, not stop' as it holds rates at 3.75%

Bank of England 'presses pause, not stop' as it holds rates at 3.75%

Majority of 6-3

Patrick Brusnahan
clock 30 July 2026 • 2 min read
Burnham calls for National Care Service acceleration

Burnham calls for National Care Service acceleration

Social care commitments

Cameron Roberts
clock 29 July 2026 • 4 min read
News editor's view: Burnham's Britain arrives

News editor's view: Burnham's Britain arrives

The news editor's Friday Night Takeaway from 24 July

Isabel Baxter
clock 24 July 2026 • 3 min read