Five investor takes on the US Fed dot plot
By Jessica Tasman-Jones, 14 Jun 18
The US Federal Reserve is looking increasingly hawkish as it votes to raise rates to 1.75% to 2%, while its dot plot of Federal Open Market Committee members expectations indicates two more hikes to come in 2018.
Larry Hatheway, chief economist, GAM Investments
“The Fed statement issued yesterday will underpin expectations for two further quarter point rate hikes this year, most probably in September and December. The Fed’s language indicates an upgrade to its assessment of US growth prospects for 2018. The FOMC member forecasts (‘dot plot’) also shifted in a slightly more ‘hawkish’ direction, both for this year and through end 2019. The statement also eliminated references to the funds rate staying below long run levels, suggesting the Fed will raise rates to their neutral level somewhat faster than previously assumed.”
Tags: Dot plot | US Fed