It’s Fed day today. 1st release by new Federal Reserve chair- Jay Powell. Update courtesy of Sean Murphy at Guaranteed Rate Affinity:
- Fed Raises Rates Quarter Point. Now at 1.75% - The Prime Interest Rate is 4.75% (This change means that Home Equity Lines of Credit and Credit Card interest rates will be increasing).
- Spending, Investment have moderated from strong Q4
- Fed estimates show steeper path for rate increases in 2019-20 based on “economic outlook has strengthened in recent months”.
- Fed forecasts Unemployment Rate at 3.6% in 2019.
- Fed says inflation low, but is expected to rise in coming months and to stabilize” around the Fed’s 2% target “over the medium term.”
- Fed says three rate hikes for 2018, raises outlook for hikes in 2019, 2020.