The Fed surprised markets by forecasting three interest rate hikes next year, and that number could increase even more once President-elect Donald Trump takes office.
The Fed Wednesday raised rates for the second time in 10 years, boosting their short-term interest rate target by a quarter point to 0.50 to 0.75 percent.
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The Fed had been expected to act based on the economic data it has seen in recent months, and not the promise of tax cuts and fiscal stimulus proposed by the incoming presidential administration of Donald Trump. The Fed’s mandates are controlling inflation, which has been stubbornly low, and reaching full employment.