(Harvest) Despite weaker economic data of late, the U.S. Federal Reserve matched market expectations in raising its benchmark interest rate June 14, 2017 a quarter point, setting its new range to a still highly accommodative 1% to 1.25%. Mattering more to markets, though, was the Fed’s updated, rather hawkish guidance of one more rate hike in 2017 and the start this year of a program to gradually trim its $4.5 trillion balance sheet. Higher benchmark rates and the slow unwinding of the Fed’s balance sheet should lift long-term borrowing costs, which have lately, somewhat paradoxically, been easing.
Don’t Worry. Low Unemployment to Trump Transitory Low Inflation
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